WTI OIL 4H Death Cross. Trade the break-outs.

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:

WTI OIL 4H MA50 holding as Support. Levels to buy and sell.

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.

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