- US oil resumes correction from seven-year highs of $ 84.97.
- WTI is about to confirm the breaking of a rising wedge on the 4-hour chart.
- Support for the SMA 50 at $ 82.73 is key as the RSI turns bearish.
WTI (NYMEX futures) is moving lower so far this Wednesday, as bears look to resume the corrective slide from seven-year highs of $ 84.97.
At the time of writing, US oil is trading at $ 83.26, shedding -0.94% on the day, en route to the next critical support at the 50-period moving average on the 4-hour chart at $ 82.73.
The previous day’s weakness is spreading to the European session, as the WTI has fallen below the 21 SMA at $ 83.47.
Black gold is now looking for a breakout of an ascending wedge in said time frame, with a 4-hour candle closing below the trend line support at $ 83.23 needed to confirm the break to the downside.
If the bears are successful, immediate support is seen at the 50 SMA, below which the round level of $ 81.00 could be tested.
The next fierce support awaits at the October 21 lows of $ 80.06.
The RSI has broken through the midline, turning into the bearish zone, which suggests that further declines are on the table.
WTI 4 hour chart
On the other hand, any recovery attempt will run into the initial hurdle at the 21 SMA, the previous support now turned into resistance.
Higher up, buyers will look for new tickets toward $ 84.42, Oct. 26 highs. Higher up, the rally could extend to the multi-year highs of $ 84.97.
WTI additional levels
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