WTI oil futures are giving a bearish picture on the 4-hour chart. Prices are on a downwards trajectory as they have been making lower highs since the August 10 peak of 50.19. The 20-period moving average (MA) crossed below the 50-period MA earlier today giving a bearish signal.
Following a neutral phase between August 21 until 28, prices came under severe pressure after breaking below the key 47.00 level. This is now expected to act as strong resistance to the upside. Downward momentum has clearly picked up based on the falling MACD. But the flat RSI suggests some consolidation in the near term. A move below 46.13 would open the way to target the next major low at 45.38 (July 24 low). Such a move would strengthen the bearish scenario.
Only a sustained move above 47.00 would indicate that the near-term downward pressure has eased. Trading above this support level brings the market back to neutral until prices rise towards the next major top at 48.87 (August 18 high). From here, a push higher to reclaim the key 50.00 level cannot be ruled out.
For now, the bias is tilted to the downside based on the bearish technicals, which are diminishing the odds for a sustained rebound in the short-term.
