- January 10, 2023
- Posted by: Tradingshot Articles
- Category: Commodities
WTI Oil (USOIL) formed yesterday a Death Cross on the 4H time-frame, the first such (bearish) formation in almost 2 months (since November 17 2022). The price got rejected exactly on both the 4H MA50 (blue trend-line) and 4H MA200 (orange trend-line) following last week’s rejection (January 03) on the 1D MA50 (yellow trend-line). We covered this on our last week analysis:
The only pattern that is in favor of Oil rising is the Channel Up of October 18 to November 07, which held the Medium-term Support. A similar Channel Up can re-test the 1D MA50 but as always on risky set-ups, it is best to trade the break-out. That is the 76.70 Resistance, between the 4H MA200 and 4H MA50.
On the downside, a break below the 72.50 Support, targets a Lower Low on the long-term Channel Down (dashed) close to 68.00.
As before, keep an eye on the 1D RSI, which has a clear Lower Highs trend-line that offers solid sell entries.