Hello Community,
welcome to my new analysis of WTI OIL on the daily timeframe perspective. On the local term, WTI recently showed strong bearish breakdowns to the downside at an accelerated bearish pace. Now, I have detected further underlying developments that are highly necessary to consider in the current state of the market.
When looking at my chart, we can see how WTI OIL is now forming this huge ascending wedge formation. Within the formation, it has already broken down several times to the downside. Now, it is already penetrating the 20-EMA marked in red. At the moment, there is still a lot of supply which is just waiting to be dropped bearishly onto the market.
Once a final breakout below the lower boundary of the ascending wedge formation has been completed, this will accelerate the bearishness to the downside and activate the initial target zones as seen in my chart. It will be highly necessary to consider how the momentum evolves till then because, when there is a massive bearish momentum increase, WTI could even drop below the initial targets.
In this manner, thank you a lot for watching!
Support is highly appreciated.
VP