The following remark was made in the previous post on the daily bar chart pattern of WTI Crude Oil: "A fall below 52 can take oil's price down below its 20 day and 50 day EMAs to the next support level of 50."
A sharp fall below 52 on Apr 19 dropped oil's price below its 20 day and 50 day EMAs. The 50 level failed to provide any support, as oil's price plunged below its 200 day EMA into bear territory.
Daily technical indicators are in bearish zones. MACD is showing downward momentum. RSI is moving sideways. Slow stochastic is inside its oversold zone, and can trigger a pullback towards 50. Bears may use any rise to sell.
Rising crude production in Libya and USA has countered OPEC-led production cuts aimed at clearing a supply glut.
On longer term weekly chart (not shown), oil's price has closed below its three weekly EMAs in a long-term bear market. Weekly technical indicators are looking bearish and showing downward momentum.
Brent Crude Oil chart
The daily bar chart pattern of Brent Crude Oil dropped sharply below its 20 day and 50 day EMAs on Apr 19. After receiving token support from the 53 level, oil's price dropped further to seek support from its 200 day EMA.
On Apr 27, oil's price dropped below its 200 day EMA, but bounced up after receiving support from the 51 level. Bullish hopes suffered a jolt when oil's price slipped down to close below its 200 day EMA in bear territory on May 1.
Daily technical indicators are in bearish zones, hinting at some more correction. Expect bears to sell on any pullback effort by bulls.
On longer term weekly chart (not shown), oil's price has closed below its three weekly EMAs in a long-term bear market. Weekly MACD is still in bullish zone. RSI is in bearish zone and Slow stochastic is inside its oversold zone. All three technical indicators are showing downward momentum.