Last week, the price of WTI oil settled considerably off its best levels, consequently delivering a Japanese shooting star candlestick formation on the weekly chart (bearish). Despite bottoming in late 2023 and printing a series of higher highs and higher lows on the daily timeframe, daily technical resistance also made a show last week.

The daily timeframe shows clear resistance formed by way of channel resistance taken from the high of $76.14, horizontal resistance at $81.69, a 1.618% Fibonacci projection ratio at $82.72 and a 100% projection ratio at $81.60. In view of this and the weekly timeframe’s Japanese shooting star candle pattern forming last week, in addition to room to trade lower to daily support at $77.55 (which happens to be connected closely with the 50-day and 200-day simple moving averages [SMAs] at $77.17 and $78.55, respectively), bears could remain in command this week.

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