4-hour Chart – Short Term Outlook: Bearish

Thursday 17th October

The daily chart for WTI crude oil reflects a bearish outlook as the price has recently failed to break above key resistance levels and has started to pull back. The price is currently trading below both the 50-day moving average (pink line) at 75.30 and the 200-day moving average (green line) at 77.83, which are now acting as strong resistance. The failure to hold above these moving averages confirms that the bears are in control. Additionally, the downward sloping trendline (orange) from the highs of May further pressures the price, limiting any upside potential. The Stochastic Momentum Index is in negative territory at -2.92%, supporting the bearish momentum. If the price continues to trade below these resistance levels, the next downside targets are at 73.13 and 66.68. Traders maintaining a bearish view can place a stop loss above 75.30 to protect against any retracement.

On the 4-hour chart, the short-term outlook is also bearish, with the price currently trading below both the 50-period moving average (pink line) at 74.02 and the 200-period moving average (green line) at 71.41. The price has recently failed to break above the key resistance level of 75.30, resulting in a sell-off, and is now testing support near 71.41. The downward momentum is confirmed by the Stochastic Momentum Index, which is deep in oversold territory at -89.19%, indicating that while a short-term bounce is possible, the broader trend remains bearish. If the price fails to hold above 71.41, the next support level is at 66.68. A stop loss above 74.02 is recommended for traders looking to capitalize on the bearish trend.

Wednesday 16th October

The daily chart of WTI crude oil shows a bearish outlook as the price is trending downward, facing resistance from both the 50-day moving average (pink line) at 73.24 and the 200-day moving average (green line) at 77.84. The price recently broke below a key ascending trendline (orange line), reinforcing the bearish sentiment. The next immediate support lies at 66.68, and a break below this level would likely lead to a test of 63.80. The Stochastic Momentum Index is at 10.20%, signaling that the market is in oversold territory, which could lead to a short-term bounce. However, the overall trend remains bearish, with downside targets near 66.68 and a stop loss level placed above the resistance at 73.24 to protect against any upward reversals.

The 4-hour chart reinforces the bearish short-term outlook for WTI crude oil, with the price currently below both the 50-period (pink line) and 200-period (green line) moving averages. Immediate resistance is at 72.63, with the price struggling to hold above support at 71.52. A break below this support could lead to further downside toward 68.68. The Stochastic Momentum Index is oversold at -72.20%, indicating that while a temporary bounce may occur, the overall short-term momentum remains negative. Traders should look to short positions with a stop loss above 72.63, while targeting the next downside levels around 68.68.

Tuesday 15th October

The daily chart for WTI crude oil shows a neutral bias as price action struggles to establish a decisive trend, with key technical levels acting as both support and resistance. The price is currently hovering around the 50-day moving average at 73.35, which has acted as a pivot point in recent sessions. The 200-day moving average at 77.84 is slightly above the current price and serves as a key resistance level. A descending trendline from the March highs, shown in orange, adds further resistance around 75.30, indicating that the price is still trading within a broader consolidation pattern. The Stochastic Momentum Index is at 26.24%, just above oversold conditions, suggesting that the bearish momentum may slow down, potentially leading to a near-term rally. However, without a strong breakout above the 75.30 level, the outlook remains neutral, with support levels at 66.68 and 68.60 acting as potential downside targets.

On the 4-hour chart, the short-term outlook is bearish as price has broken below key support levels, including the 200-period moving average at 71.67. This break signals a loss of bullish momentum, with the next downside target at 68.60. The Stochastic Momentum Index is deeply in oversold territory at -50.54%, indicating that the price may attempt a short-term bounce, but the overall structure remains bearish as long as the price stays below the 74.82 resistance level. The descending trendline from the higher timeframes continues to add pressure on the price, reinforcing the bearish outlook. A break above 74.82 could lead to a test of 76.00, but traders should remain cautious of any rallies, given the bearish trend.

Monday 14th October

The daily chart for WTI Crude Oil indicates a neutral longer-term bias. The price is currently sandwiched between the 50-day (pink line) moving average at 75.30 and the 200-day (green line) moving average at 71.75. While the recent rally broke above the descending trendline (orange), the price is consolidating near resistance at 77.85. This level has historically served as a strong resistance, and a break above this would open up the potential for a retest of the next significant level at 80.30. On the downside, immediate support lies at 73.43, with a break below this level likely triggering further downside toward the 200-day moving average at 71.75. The Stochastic Momentum Index is currently at 43.09%, suggesting the market is neither overbought nor oversold, pointing to indecision in the near term. Traders should maintain a cautious approach, with stops below 73.43 to guard against downside risks.

On the 4-hour chart, the short-term outlook appears neutral, with the price attempting to hold above the key support level of 74.58 (orange trendline). The 50-period (pink line) moving average is acting as immediate resistance at 74.58, while the 200-period (green line) moving average at 71.75 serves as a critical support level. The Stochastic Momentum Index is at 47.78%, indicating that the market is in a consolidation phase after recent volatility. The price has struggled to clear the resistance at 75.30, and failure to break higher could lead to a pullback toward the support zone at 71.75. If this level holds, it would provide an opportunity for bullish traders to re-enter, but a breach would likely lead to a deeper correction toward 68.69. A stop-loss just below 71.75 is advised for any long positions.

Friday 11th October

The daily chart for WTI Crude Oil reveals a bearish longer-term bias as the price has been trending lower, with key trendlines acting as resistance. The downtrend is defined by the descending trendline from the November 2023 highs, currently intersecting near 80.3042. The price has recently failed to break above this trendline, confirming bearish control. The pair is trading below the 200-day moving average (green line) at 77.8517, which now acts as a significant resistance level. The 50-day moving average (pink line) at 75.3022 is providing some immediate support, but any breakdown below this level could see the price accelerate towards the next support at 73.4284. The Stochastic Momentum Index is in overbought territory and turning lower, suggesting weakening bullish momentum and the potential for a resumption of the broader downtrend. Upside resistance is defined at 77.8517, with a breakout above potentially shifting the outlook to neutral, while a downside break below 73.4284 could see the pair target 66.6900. Traders should consider placing a stop loss above 77.8517 to manage potential short-term spikes.

The 4-hour chart presents a bullish short-term outlook as the price has recently broken above the descending trendline from the mid-September highs, signaling a potential reversal of the short-term downtrend. The price is holding above the 50-period moving average (pink line) at 73.8375, which now acts as immediate support, while the 200-period moving average (green line) at 71.7749 provides stronger downside support. The Stochastic Momentum Index has crossed above the 20-level, indicating a shift to positive momentum, and suggesting that further gains are likely in the near term. Immediate resistance is found at 75.3022, and a break above this level could push the price towards 77.8517. However, failure to sustain above 73.8375 would invalidate the bullish bias, with downside support targets at 71.7749 and 66.6900 if selling pressure intensifies. A recommended stop loss for long positions should be set below 73.0000 to manage risk in case of a sudden bearish reversal.