The new week starts with the analysis of the WTI Oil, which was previously mentioned here on Friday. Did many things change since then? Not really but we would like to describe the current situation in a greater detail.
The mid-term chart here is beautiful, the price really created a good-looking downtrend. Why is it beautiful? Because it already lasts since the 3rd of October and during that time, the price is moving very technically. Traders are respecting the main downtrend (red) with a great accuracy. What is more, every single correction so far (blue) was a technical pattern! First, we had a pennant, then, a rectangle and a flag. The last one and in the same time, the smallest one, was the flag too. All of them ended with the breakouts of the lower lines. On Thursday, WTI managed to break the horizontal support on the 64 USD/bbl (green, important in June and August). On Friday, sellers managed to break the 38,2% Fibonacci.
All that is negative and keeps the sell signal alive. Monday started with a small rise but this is not technically significant. The negative approach is ON as long as we stay below the combination of the green and red lines.
