FxWirePro: Momentary bears in WTI line up in whipsaws, pop up with flurry of bearish patterns ahead of inventory check

On daily terms, the shooting star is traced out at 53.01 levels to evidence the price slumps below DMAs.

On weekly terms, spinning top and doji are occurred at 53.67 and 53.15 levels respectively.

Well, for now, interim dips seem to be on cards as spinning top and long legged doji appear in whipsaws pattern after the uptrend.

Bulls seem to have exhausted at resistance at 54.31 to 55 levels, more price dips seems to be on cards as the current prices attempt to slide below 7SMA.

You could very well observe the divergence between price curve & RSI, as a result, we foresee downswings may extend to retest support at around 50.5467 levels. The other leading oscillator (stochastic) has been indecisive but bearish bias by signaling overbought pressures.

On the contrary, as stated in our previous post we’ve been still firm on bullish targets in medium-long run, WTI crude price has been spiking higher through ascending triangle (monthly chart) showing strength in rallies after the formation of dragonfly doji on monthly plotting.

RSI evidences the upward convergence to the price spikes on this timeframe. While stochastic curves have been indecisive but bullish bias.

To substantiate this bullish stance, weekly MACD signals upswings to extend further.

Oil prices plummeted on Wednesday over concerns that producer club OPEC would not be able to maintain its high compliance so far with output cuts aimed at reining in a global fuel supply overhang.

Oil prices slid below 53 levels in Asia on Wednesday ahead of the market shrugging off a much larger than expected build in U.S. inventories reported by an industry group.