WTI Oil: Consolidating still within a downtrend.

Oil is currently consolidating following last week's low on a similar candle sequence after November's 49.35 low. So far the price action has strong similarities, indicating that this sideways movement is just a consolidation within the long term downtrend on 1W (RSI = 25.808, MACD = -5.730, Highs/Lows = -10.4250). The price needs to break the November low (49.35) in order to change this recurring pattern and reverse the long term bearish bias (as on the previous candle sequence it failed, see the red dashed line). Otherwise it will consolidate for another week (1D already neutral on key indicators: CCI = -30.8338, Highs/Lows = 0.0000, STOCH = 53.874), only to drop lower on the second half of January.

Technically, 42.005 is a 1M (monthly) support and as shown below, has high chances of sustaining a rebound:






** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **

Comments and likes are greatly appreciated.