WTI RETEST AGAIN 4H DESCENDING LINEWTI crude oil traded lower yesterday after hitting resistance at $108.73 on Monday, near the downside resistance line. Although the black liquid remains below that line, it is also trading above the key support territory of $93.00. Thus, the experts expect some short-term declines up until that zone, but for the outlook to become overly bearish, we believe a clear and decisive dip below $94.75 is needed.
On the upside, yesterday's price was retested and again confirmed the descending upper triangle line as a support. The traders would like to see a clear break above $108.65 before they start examining the bullish case. This could also confirm the break and may pave the way towards the $115.63 level or the high taken from March 08th at levels around $125.00.
Such a dip will confirm a forthcoming lower low on the daily chart and may see scope for declines towards the 88.65 or 86.45 zones. If neither obstacle can stop the bears, then we may see them pushing towards the low of January 24th, at 82.50.
Shifting attention to our short-term oscillators, we see that the RSI, already below 50, shows signs of turning south again. At the same time, the MACD, although slightly positive, lies below its trigger line and looks ready to fall below zero soon. Both indicators suggest that oil could start gaining downside speed again more quickly.
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