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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. 

Daily chart

Trend: Corrective bounce likely

Technical levels


 

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