IronFX: WTI traded lower on Wednesday, fell below the 44.50 (S1) zone, but triggered some buy orders near the 43.80 (S2) support and rebounded back above 44.50 (S1).
Crude Oil rebounds from near 43.80
The fact that the price is trading below the uptrend line taken from the low of the 11th of February, and also below the downtrend line drawn from the peak of the 9th of June, keeps the short-term outlook negative in my view.
As a result, I would expect the bears to take control again soon and push the price below 44.50 (S1), perhaps for another test near 43.80 (S2).
Looking at our short-term oscillators though, I see signs that further upside correction is likely. The RSI rebounded from its 30 line, while the MACD, although negative, has bottomed and appears ready to cross above its trigger line.
As for the broader trend, the break below the uptrend line taken from the low of the 11th of February brings into question the uptrend started back in January.
The fact that the price closed below 46.00 on the 7th of July may have brought a medium-term trend reversal.
• Support: 44.50 (S1), 43.80 (S2), 43.30 (S3)
• Resistance: 45.00 (R1), 45.65 (R2), 46.30 (R3)