Every attempt of upswings restrained below 7DMA, current prices consistently sliding below 7DMA (on dailies). As a result, bears have managed to plunge the current prices at 4-months lows.

Last two weeks’ of WTI crude price behavior is restrained within a range between 49.59 and 47.06 levels after the break below ascending triangle support (refer weekly chart), bears are most likely to drag more slumps upon bearish EMA crossover but don’t interpret this as a shorting opportunity for long-term investors.

You could easily observe whipsaws pattern on this timeframe has evidenced considerable price declines contemplating the previous uptrend, consequently, you could see a stern bearish candle with the big real body.

RSI evidences the downward convergence to the ongoing price dips. While stochastic curves have been indecisive but bearish bias.

MACD signals the bear swings to extend further to substantiate the above bearish pattern.

Although the weakness in short term trend is prevalent, we don’t encourage short build ups for long-term investors at this juncture, well on the flip side, with dubious stances due to above candle patterns (breach below ascending triangle support, bearish EMA crossover and leading & lagging oscillators signaling momentum) lures bearish speculative opportunities in short term, however, we reiterate sitting mum to see better clarity.

Trading tips:

As the pair clouded between intraday and short-term bearish traction we would like to place diplomatic trading strategies.

Hence, below boundary binary options are advocated that is suitable at this juncture.

For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 48.58 and lower strikes at 47.57 which means upward travel maximum upto 50 pips and 50-60 on southward targets within the binary expiry duration.

While on hedging grounds, the short futures position with near month tenors are advocated which is an unlimited return and unlimited risk position that can be entered by this energy commodity trader who has exposure towards near month deliveries to profit from a potential declines in the price of the underlying spot outrights upto 45.93, but maintain a strict stop loss of $49.