WTI Breakout Lower

WTI shed nearly 10% last week and tested levels not seen since early 2021. As a result, the downside move punctured the lower boundary of a descending triangle formation on the weekly chart, extended from a high of US$95.01 and a low of US$64.34. Technically, this opens the door to possible bearish scenarios in the weeks to come toward a decision point zone at US$51.38-US$53.92. With that in mind, if you drill down to the H1 timeframe, you will note a bearish decision point zone formed at the lower boundary of the weekly chart’s descending triangle at US$64.90-US$64.24. This could be a location that traders look to fade from in the event of a pullback-retest play unfolding this week.

Written by FP Markets Chief Market Analyst Aaron Hill