WTI has formed a bearish reversal pattern on the daily chart, yet still shows potential for a bullish reversal on the intraday chart, if key resistance is broken.
The daily chart remains in a clear downtrend, although prices have retraced after coming close to testing $50.
The retracement has stalled at a resistance cluster which comprises of the 10-day eMA, March and stopped just shy of a 50% retracement level.
A dark cloud cover reversal has formed at this resistance zone to show a hesitancy to break higher. A break of $52.62 confirms the reversal on the daily chart.
If prices fail to break lower and momentum takes it higher, it could form the right shoulder of a head and shoulders reversal pattern which, if successful, projects a target around $59.60.
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