WTI Price Analysis: Five-day losing streak has brought trendline support in play
- WTI oil's daily chart is reporting the longest losing streak in three months.
- Prices are defending key ascending trendline support in Asia and may chart a minor bounce.
WTI oil fell for the fifth straight day on Monday, confirming the longest daily losing streak since early October.
The sell-off has brought the support of the trendline connecting Oct. 10 and Nov .29 lows in play.
At press time, the black gold is trading at $58.26 per barrel, representing marginal gains on the day, having found takers near the ascending trendline at $57.97 in early Asia.
The bounce could be extended further to $58.70, as the 4-hour chart relative strength index is reporting (RSI) oversold conditions and the hourly chart RSI has bounced from the sub-30 region, signaling scope for a corrective move higher.
However, if the trendline support is breached, another wave of selling could be seen and the psychological level of $57.00 could be tested.
Trend: Corrective bounce likely