WTI Oil Meets Key Resistance and Signals a Technical Turn

By Tomasz Wisniewski|

Published: September 28 2023, 10:29 GMT+0

WTI Oil Meets Key Resistance and Signals a Technical Turn


In the ever-evolving energy markets, the focus of today’s technical analysis centers on WTI Oil. Recent developments suggest that this commodity might be on the cusp of a bearish correction. This assumption is grounded in its recent interaction with a critical horizontal support at the $94 per barrel mark, distinctively highlighted in orange on the chart.

Moreover, WTI Oil’s price trajectory shows it recoiling from the upper boundary of a flag pattern, depicted with an upper blue line. This confluence of resistance zones is now playing host to a potentially significant technical pattern. As the current daily chart unfolds, we can observe the formation of a ‘shooting star’. This particular candlestick pattern, characterized by its long upper shadow and small real body, often hints at a potential top in the market, especially when it appears after a notable ascent.

The current placement of this ‘shooting star’, right at the dual resistance of the $94 mark and the flag’s upper boundary, amplifies its significance. If this candlestick pattern maintains its shape until the day’s close, it could well serve as a strong selling cue for traders.

From a target perspective, should the bearishness materialize, the initial potential support lies at the flag’s lower boundary, illustrated by the lower blue line. This could also be perceived as the lower end of a smaller channel pattern in the making.

However, as with any market, there’s always the counter-narrative. Should prices defy the current indications and surge past the orange horizontal and the upper blue line, it would undoubtedly represent a robust buying signal. But as of now, the technical landscape seems to favor the bears, albeit with a cautious undertone.

Source: https://www.axiory.com/analytics/technical-analysis/wti-oil-meets-key-resistance-and-signals-a-technic