- Last week’s intra-week loss of -17% has been recovered partially.
- Positive technical analysis elements sighted; “Morning Star” daily Japanese candlestick.
- A short-term condition of overboughtness in hourly RSI indicates the possibility of a minor pullback.
West Texas Oil Technical Analysis – Minor uptrend intact but risk of a pull-back
Fig 1: West Texas Oil trend as of 8 May 2023 (Source: TradingView, click to enlarge chart)
West Texas Oil (a proxy of WTI crude futures) staged a partial reversal on Friday, May 5, from its initial intra-week loss of around -17%. This was the week where it would record its worst weekly drop in three years.
West Texas Oil has formed a daily bullish reversal three-candlestick configuration called “Morning Star” via the price actions captured on 3 May, 4 May, and 5 May 2023. The formation of a bullish Japanese reversal candlestick confirms the possible change in West Texas Oil’s short-term downtrend since its high of US$83.53/barrel on 12 April 2023.
The recent upward movement of West Texas Oil, as shown on the 1-hour chart from its low of $4.50 per barrel of oil…