WTI Oil: False Breakout Signals Potential Downtrend

In today’s technical analysis, let’s revisit WTI Oil, which I analyzed last week. Oil is approaching a crucial resistance level marked by the black line. This resistance has been tested several times this week, but each attempt to break above it has failed, resulting in a false bullish breakout highlighted in blue. This unsuccessful breakout is a strong indication of potential downward movement, making it an appealing setup for short positions.

If you’re still hesitant, consider the orange mid-term uptrend line as your confirmation. A decisive break below this trend line, coupled with a daily close beneath it, would provide a robust signal to go short. For now, staying cautious and waiting for that breakout could yield a significant selling opportunity in the near term.

Source: https://www.axiory.com/analytics/technical-analysis/wti-oil-false-breakout-signals-potential-downtrend