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WTI Crude Oil chart
In the previous post on the daily bar chart pattern of WTI Crude Oil, a 'reversal day' bar on daily chart and a 'gravestone doji' candlestick on weekly chart had raised concerns about the formation of an intermediate top, with a correction to follow.
That is exactly what oil's price did - falling to its 50 day EMA, bouncing up to a lower top and then dropping below its 50 day EMA on BrExit concerns.
Bulls need not lose hope just yet. Oil's price is trading above its rising 200 day EMA in bull territory. Though the correction has formed a bearish pattern of 'lower tops, lower bottoms', the pattern may turn out to be a 'falling wedge' or a 'flag' - both of which have bullish implications.
All three daily technical indicators are looking bearish and showing downward momentum - hinting at some more correction.
On longer term weekly chart (not shown), oil's price has formed a small 'rounding top' bearish pattern and is seeking support from its 50 week EMA. It continues to trade well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are correcting overbought conditions.
Brent Crude Oil chart
In the previous post on the daily bar chart pattern of Brent Crude Oil, a 'reversal day' bar on daily chart and negative divergences visible on MACD and Slow stochastic had hinted at the formation of an intermediate top, with a correction to follow.
Oil's price did as expected. It dropped to seek support from its 50 day EMA, bounced up to touch a lower top and then dropped below its 50 day EMA on BrExit concerns.
Bulls can take solace from the fact that oil's price is trading above its rising 200 day EMA in bull territory. The correction has formed a bearish pattern of 'lower tops, lower bottoms'. There is a possibility that the pattern may evolve into a 'falling wedge' or a 'flag' - both having bullish implications.
All three daily technical indicators are looking bearish and showing downward momentum. Some more correction is likely.
On longer term weekly chart (not shown), oil's price has dropped to seek support from its 50 week EMA. It is trading well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are correcting overbought conditions.
In the previous post on the daily bar chart pattern of WTI Crude Oil, a 'reversal day' bar on daily chart and a 'gravestone doji' candlestick on weekly chart had raised concerns about the formation of an intermediate top, with a correction to follow.
That is exactly what oil's price did - falling to its 50 day EMA, bouncing up to a lower top and then dropping below its 50 day EMA on BrExit concerns.
Bulls need not lose hope just yet. Oil's price is trading above its rising 200 day EMA in bull territory. Though the correction has formed a bearish pattern of 'lower tops, lower bottoms', the pattern may turn out to be a 'falling wedge' or a 'flag' - both of which have bullish implications.
All three daily technical indicators are looking bearish and showing downward momentum - hinting at some more correction.
On longer term weekly chart (not shown), oil's price has formed a small 'rounding top' bearish pattern and is seeking support from its 50 week EMA. It continues to trade well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are correcting overbought conditions.
Brent Crude Oil chart
In the previous post on the daily bar chart pattern of Brent Crude Oil, a 'reversal day' bar on daily chart and negative divergences visible on MACD and Slow stochastic had hinted at the formation of an intermediate top, with a correction to follow.
Oil's price did as expected. It dropped to seek support from its 50 day EMA, bounced up to touch a lower top and then dropped below its 50 day EMA on BrExit concerns.
Bulls can take solace from the fact that oil's price is trading above its rising 200 day EMA in bull territory. The correction has formed a bearish pattern of 'lower tops, lower bottoms'. There is a possibility that the pattern may evolve into a 'falling wedge' or a 'flag' - both having bullish implications.
All three daily technical indicators are looking bearish and showing downward momentum. Some more correction is likely.
On longer term weekly chart (not shown), oil's price has dropped to seek support from its 50 week EMA. It is trading well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are correcting overbought conditions.
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