FxWirePro: WTI crude tests support at neckline of head and shoulder, trend indicators signal downtrend to prolong

Price curve has been moving "Head and shoulder pattern" but has tested the neckline support at 29.53 levels. H&S with peak at 33.78 and right shoulder at 32.72 and left shoulder at 32.50.

Although it seems like this commodity has shown a little strength, the day highs of 30.58 has been rejected which is near 21DMA.

In other terms, it is almost 21DMA crossing over 7DMA that is again interpreted to be bearish trend to prevail, so it is sell.

Most significantly, the minor spikes in intraday prices are not in conformity to the volumes (see grey shaded areas on volume histograms). These shrinking volumes with minor price rises may burn hasty bulls undoubtedly.

While on the daily price observation, it is clear downward convergence to the ongoing declining rallies, since it has recently rejected channel resistance we would expect more dips assured by both leading and lagging indicators.

We believe, despite these strong bearish indications in the robust bearish trend if we find any abrupt upswings are subject to fundamental news that would be absolutely out of the blue.

So we haven't reconsidered our bearish stance on the WTI crude oil price as it is most unlikely to move anywhere above 35 in near future and instead, think it would move back below  30/barrel shortly to head towards our recent targets at the magic number of $25 a barrel.