WTI Price Analysis: Bulls remain in the game despite strong drop

WTI price is on the back side of the channel, so that is longer-term bullish.
WTI H4 M-formation is bullish and a break of the neckline will likely put the bias back in favour.
Break below $76.40 will be putting on some serious heat on the committed bulls.

Ross J Burland FXStreet

As per the prior analysis, the price has been in a phase of distribution for the month of December, so far, following a break of a major bear channel as the following analysis will illustrate:

WTI prior analysis

In the above daily charts, it was shown that WTI was seen moving into prior highs and this had swept liquidity where a schematic of distribution was being printed:

A move towards where WTI short position stops were likely located was anticipated as per the above hourly chart.

A continuation of the downside in Oil to target liquidity below $78.00 was expected eventually while below $81.50:

WTI update

The W-formation on the daily chart has seen the price move to test the neckline.

On the 4-hour chart, the M-formation is bullish and a break of the neckline, or a 50% mean reversion, will likely put the bias back in favour of the bull for a continuation higher. After all, the price is on the back side of the channel, so that is longer-term bullish. However, a break below $76.40 will be putting on some serious heat on the committed bulls as per the following daily and 4-hour charts:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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