WTI oversold bounce back capped at 6160The WTI Crude Oil is currently trading with a bearish bias, aligned with the broader downward trend. Recent price action shows a retest of the longer term support, suggesting a temporary relief rally within the downtrend.
Key resistance is located at 6160, a prior consolidation zone. This level will be critical in determining the next directional move.
A bearish rejection from 6160 could confirm the resumption of the downtrend, targeting the next support levels at 5946, followed by 5845 and 5780 over a longer timeframe.
Conversely, a decisive breakout and daily close above 6160 would invalidate the current bearish setup, shifting sentiment to bullish and potentially triggering a move towards 6215, then 6300.
Conclusion:
The short-term outlook remains bearish unless the WTI Crude price breaks and holds above 6160. Traders should watch for price action signals around this key level to confirm direction. A rejection favours fresh downside continuation, while a breakout signals a potential trend reversal or deeper correction.
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