IronForex: WTI traded lower yesterday, falling back below 51.40 (R1) and hitting support at 50.45 (S1), near the prior downside resistance line taken from the peak of the 10th of October.
Given that the price is testing that line as a support now, I see the likelihood for the next leg to be positive, perhaps for a test near the 51.40 (R1) zone.
Our momentum indicators support somewhat the notion. The RSI, although below 50, turned up again, while the MACD shows signs of bottoming near its zero line.
As for the bigger picture, the break above the downside resistance line taken from the peak of the 9th of June has turned the medium-term outlook somewhat positive.
This is another reason I believe that any retreats may remain short-lived and that the bulls are likely to take charge again.
• Support: 50.45 (S1), 50.00 (S2), 49.30 (S3)
• Resistance: 51.40 (R1), 52.00 (R2), 54.00 (R3)