- Recent bullish movement of WTI crude oil for the last 4 weeks has revealed bullish exhaustion.
- Risking a negative counter-trend/mean regression movement during a major upward trend phase.
- US$93.80 will be the key resistance with an intermediate support range of US$86.30/US$84.90
West Texas Oil (a proxy of WTI crude oil futures)’s relentless medium-term uptrend move of +19% from the 24 August 2023 low of US$77.00/barrel to yesterday’s 19 September high of US$93.05/barrel has flashed out sights of bullish exhaustion where the next set of price actions are likely to be a bearish counter-trend/mean reversion movement within its major uptrend phase that is still intact since 4 May 2023 low of US$63.67/barrel.
Bearish “Shooting Star” formed right below key resistance
Fig 1: West Texas Oil medium-term trend as of 20 Sep 2023 (Source: TradingView, click to enlarge chart)
During yesterday’s intraday session, price actions continued their bullish impulsive movement during the Asian and European sessions but sizzled out throughout the US session as it closed near the low (US$90.93) of the day, 19 September.
This set of intraday price action behaviours culminated into a daily “Shooting Star”, a bearish…