The following comment appeared in the previous post on the daily bar chart pattern of WTI Crude Oil: "All three daily technical indicators are looking bearish and showing downward momentum - hinting at some more correction."
Oil's price moved above its three EMAs into bull territory - immediately after the previous post - but touched a lower top and corrected down to seek support from its rising 200 day EMA.
Daily technical indicators are in bearish zones and showing downward momentum - suggesting a possible break below the 200 day EMA towards the zone between 40-42.
On Mon. Jul 11, oil's price closed at a 2 months low. Production by OPEC countries reached an 8 years high, causing a supply glut.
On longer term weekly chart (not shown), oil's price formed a small 'rounding top' bearish pattern and slipped below its 50 week EMA. It continues to trade well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are showing downward momentum after correcting overbought conditions.
Brent Crude Oil chart
In the previous post, bearish technical indicators had hinted at a continuation of the corrective move on the daily bar chart pattern of Brent Crude Oil.
After bouncing up above its three EMAs into bull territory in end-Jun '16, oil's price resumed its correction and has closed just below its 200 day EMA in bear territory.
Is the 4 months long rally from the Jan '16 low over? Bearish 'rounding top' patterns being formed by the 20 day and 50 day EMAs are suggesting a correction towards the zone between 40-42.
Daily technical indicators are in bearish zones and showing downward momentum. However, Slow stochastic is looking quite oversold, and can trigger a brief recovery in price.
On longer term weekly chart (not shown), oil's price dropped below its 50 week EMA and is seeking support from its 20 week EMA. It is trading well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are in bullish zones after correcting overbought conditions, but showing downward momentum.