From the neckline of a bearish formation, WTI bounces off the intraday low.
Sellers are favored by the MACD condition and the prolonged break of the 200-SMA.
During early Friday, WTI consolidates weekly losses while collecting up bids around $71.70, up 0.30 percent intraday.
On the four-hour (4H) chart, the black gold makes a U-turn from the support line of a bearish chart pattern called head-and-shoulders. Nonetheless, the 200-SMA collapse and negative MACD indicate that energy prices will continue to fall.
Bears should therefore wait for a decisive downside breach of $71.00 before aiming for the late-May low of $65.00.
The $70.00 level and the early June wing lows near $68.30-35 could test the commodity’s downside in the fall.
Meanwhile, a decisive break of the $72.50 and $74.30 resistance levels would be highlighted if the 200-SMA level is broken.
WTI bulls, on the other hand, may want to be cautious until the price continues below $75.00.
Overall, oil purchasers appear to be worn out, and a confirmation of the bearish chart pattern could bring about the long-awaited price drop.
More weakness is likely in the future./n
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