WTI Oil Analysis – Waiting for the OPEC with a nice technical sell signal

Today we do have an OPEC meeting so we need to update you about the situation on the Oil. Previously, we wrote a piece about this commodity on the 21st of November, when the price was bouncing from the green resistance, which was a 61.8% Fibonacci. Price being below such an important level was for us a clear sign for a further decline. This is what we said back then:

“The green area was the last important support in the mid-term, so there is not much hope left here. Today, buyers try a reversal but chances for a bigger rise are limited, at least as long as we stay below the green area. With this kind of a price action, our eyes goes to the lows from June. Maybe we will even get there this year. „

The price was continuing the drop till the end of the last week. Then we all know what happened, we got this bullish gap after the XI-Trump meeting, which sent the price a bit higher. Calm down though, there is no buy signal here whatsoever. Actually we can see quite the opposite – a great opportunity to sell. Recent rise brought us to the green resistance mentioned above. That level brought us a bounce again and a bounce is shaped like head and shoulders pattern. What is more, in the same time we tested the long-term down trendline (black). From the technical point of view that is an amazing selling opportunity! Only if not this OPEC meeting…