The post Potential cracks showing in downtrend appeared on BitcoinEthereumNews.com.

Oil is in a short-term downtrend but is showing signs that could be early evidence of a reversal.  Oil has formed a bullish Doji candlestick reversal pattern at the day’s lows which could hail a stronger recovery.  A break above the major trendline would be required for confirmation – as things stand the downtrend remains intact.  West Texas Intermediate (WTI) US Crude Oil is trading up over a percent at $78.01 on Thursday.  The commodity is in a short-term downtrend on the 4-hour chart (below) which given the old saying “the trend is your friend” would be expected to continue, favoring shorts over longs.   WTI Oil, however, is showing some early bullish reversal signs. It formed a Doji Japanese candle at Thursday’s 76.74 lows (shaded rectangle). This was followed by two bullish candles in a row. Although it is too early to say for sure, the candlestick formation could be an indication of a short-term change of trend.  Oil 4-hour Chart If Oil can continue rising up and definitively pierce above the green down trendline at roughly $79.00 it would be a sign that the short-term trend had reversed.  A definitive break above the trendline would be one accompanied by a longer-than-average green candle that closed near its highs or three green candles in a row that broke above the trendline.  Such a break would be expected to climb to a target at about $80.00, the resistance level of the May 20 lower high.  The Moving Average Convergence Divergence (MACD) momentum indicator is below the zero-line indicating a bearish environment. The blue MACD line is looking like it is about to cross above its red signal line, however, which would give a buy signal in line with the possibility of a reversal indicated by the Japanese candlestick pattern.   Alternatively, a…

---

Filed under: News - @ May 23, 2024 3:16 pm