Bearish WTI
Updated
Hello Traders
On Saturday I posted this idea already
The price did not break out of the big triangle yet (as I mentioned in the last idea), but there is a smaller triangle I did not mention where the price did break out last week. Friday night the price was testing the triangle resistance and pushed down. Yesterday it broke out off the bearish flag and is now testing the resistance at 9700 again, plus a hidden bearish divergence on H1 has emerged.
It looks like the price will close under the H1 100 EMA. If, then there is a big chance for more downside momentum. A close below the big triangle bottom will give more downside pressure till 8800 maybe till 7600 if it breaks through the support at 8800.
Here are some fundamentals:
- Chinese Covid woes. The lockdown in Shanghai (China’s largest city) is putting a
cloud over oil’s demand prospects.
- US production is expected to slowly but surely increase over the coming months.
Traders should continue to monitor global inventory levels, production and the situation in Shanghai.
Good trades!
On Saturday I posted this idea already
The price did not break out of the big triangle yet (as I mentioned in the last idea), but there is a smaller triangle I did not mention where the price did break out last week. Friday night the price was testing the triangle resistance and pushed down. Yesterday it broke out off the bearish flag and is now testing the resistance at 9700 again, plus a hidden bearish divergence on H1 has emerged.
It looks like the price will close under the H1 100 EMA. If, then there is a big chance for more downside momentum. A close below the big triangle bottom will give more downside pressure till 8800 maybe till 7600 if it breaks through the support at 8800.
Here are some fundamentals:
- Chinese Covid woes. The lockdown in Shanghai (China’s largest city) is putting a
cloud over oil’s demand prospects.
- US production is expected to slowly but surely increase over the coming months.
Traders should continue to monitor global inventory levels, production and the situation in Shanghai.
Good trades!
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