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USDWTI - Triple Top Attempt

The price of WTI Crude oil has rallied in 2016 from a low near 26 to a high just above 42 this week. However, as we can see in the 1H chart, WTI Crude retreated after cracking 42 for the 3rd time this week, forming essentially a triple top.

USDWTI 1H Chart 4/14


(click to enlarge)

If we see a break below 41, and the 1H RSI falls below 40, we should consider a possible bearish pullback, like we saw in the latter part of March.

If oil price holds above 40, it would be a strong sign that it is actually turning bullish, or at least establishing a base. Otherwise, we should anticipate a possible retreat towards 36, and more aggressively, the 34.30-34.50 support/resistance pivot area seen in the daily chart.

USDWTI Daily Chart 4/14

(click to enlarge)

Now, if price holds above 40, or even if it goes to 38 and bounces up, then, the bullish outlook has the 43.35 support/resistance pivot area in sight in the short-term.