The second half of June hasn’t been the best for WTI oil. It’s promising for all drivers, but it’s not been good for oil-exporting countries and holders of long positions. Today, we have a significant technical event on the chart, which can bring us a proper sell signal in the mid-term.
The first half of June was great. The price was aiming higher and was on its way to setting new, long-term highs. Buyers lost the momentum, though, and the price dropped. Over the past few days, bulls tried to defend the mid-term up trendline (red), but today’s candle shows that this task will fail. The breakout of that support is this important event we wanted to emphasize today.
WTI breaking that uptrend line will open a way for testing the horizontal support on $95 (orange). The movement towards that area seems currently inevitable. Sentiment on WTI will remain negative as long as the price remains below the red line. A comeback above will be bullish, but chances for that happening are now limited.
