FxWirePro: Bears in WTI CFDs resume after rejecting at channel resistance in minor trend and 21-EMAs in major trend, more slumps on cards

The crude prices are stuck in a narrow range $47.75-47.50 levels earlier today ahead of the lingering speculation on weekly supply data announcement which is due later in the US session. Bears managed to plummet every upswing below channel resistance in the recent past, while bearish DMA crossover & leading oscillators also indicate more slumps on cards (refer daily chart).

The current prices in minor trend slid below 21DMAs, while bulls check support at ascending triangle baseline but restrained below 21EMAs. Last month also, the crude price upswings have been restrained at the stiff resistance of $50.38 (i.e. 21EMA levels).

On a broader perspective, the consolidation phase goes in the symmetric triangle pattern, tests resistance at the downward trend line, consequently, the current prices slide below EMAs. For now, the selling sentiments are coupled by both leading oscillators.

RSI signals overbought pressures by evidencing the downward convergence to the price declines on the daily chart. While stochastic curves have been indecisive but little bearish bias on both time frames.

To substantiate this bearish stance, daily MACD signals downswings may extend further. Hence, we don’t encourage long-term long build ups, instead, we advocate shorts in WTI crude as the underlying price of this energy commodity may slide again upto 45.75 levels, maintain the strict stop at $49 levels.

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