WTI retreats, but no divergence at play here
Daily chart of US Oil/WTI Oil does not show any negative price-RSI divergence as we spotted earlier today on the daily chart of Brent oil.
So the question arises is whom to trust as major reversals usually happen after bearish divergence with RSI. Though Brent shows it WTI does not.
From traders perspective, it is important to see if both benchmarks drop and sustain below April 29 high. If so, Brent's negative divergence would gain more credence.
If there is a rebound, from April 29 high, the fact that there is no bearish divergence on WTI gains credence and then would indicate increased prospects of rally in both benchmarks.
So the question arises is whom to trust as major reversals usually happen after bearish divergence with RSI. Though Brent shows it WTI does not.
From traders perspective, it is important to see if both benchmarks drop and sustain below April 29 high. If so, Brent's negative divergence would gain more credence.
If there is a rebound, from April 29 high, the fact that there is no bearish divergence on WTI gains credence and then would indicate increased prospects of rally in both benchmarks.
