A barrel of West Texas Intermediate WTI crude, North America’s benchmark oil index, is trading near $ 53.00, virtually unchanged on the day, after having faced rejection near $ 54.00 on Wednesday.
According to the bearish divergence of the Relative Strength Index (RSI) on the 4-hour chart, the pullback from Wednesday’s high could extend to the support of the 50-SMA on the 4-hour chart, currently at 52.15 $.
A break out of that level would expose the rising low at $ 51.50 created on the 4-hour chart on January 11.
On the other hand, a move above $ 53.40, the high of the right shoulder in a shoulder-head-shoulder pattern on the 15-minute chart, would open the doors for a retest of the $ 53.93 level (13th high of January).
WTI 4 hour chart
WTI technical levels