Technical Breakdown in Oil prices
WTI Crude Oil has seen a technical break lower, although momentum has not accompanied the later part of the move.
A rising 4-hour channel broke down last Friday, with momentum accelerating to the downside, and a rising trendline from February lows was seen broken during the FOMC Statement on Wednesday.
Retracements in the pair may now be capped by resistance found at the $49.69 price point, reflecting the highest daily close in the fourth quarter of 2015. A secondary level is found at $50.18 representing May highs. The $50.00 price point provides resistance as a psychological level.
The stronger uptrend witnessed from this year's lows dictates a consolidation period may take place prior to a broader decline.
A rising 4-hour channel broke down last Friday, with momentum accelerating to the downside, and a rising trendline from February lows was seen broken during the FOMC Statement on Wednesday.
Retracements in the pair may now be capped by resistance found at the $49.69 price point, reflecting the highest daily close in the fourth quarter of 2015. A secondary level is found at $50.18 representing May highs. The $50.00 price point provides resistance as a psychological level.
The stronger uptrend witnessed from this year's lows dictates a consolidation period may take place prior to a broader decline.