WTI Oil is traded at $22.43 and it seems heavy enough to decrease further on the short term. WTI price ignores the OPEC+ alliance announcement to cut the production again to combat the COVID-19 epidemic effects. Unfortunately, the demand is still low, that's why the price stays lower and it continues to drop.
Technically, the price has developed two reversal patterns, but we still need a confirmation that the WTI will give birth to a bullish movement. WTI Oil remains under high selling pressure, but another rejection from $20 level could signal an increase in the short term.
WTI Oil has developed a Bullish Engulfing pattern, but the price has failed to stay and stabilize above the 27.68 level. The sell-off was stopped by the 50% (descending dotted line) Fibonacci line of the descending pitchfork. The price has registered only a false breakdown below this level, so another rejection or another false breakdown below the 50% Fibonacci line will signal a rebound.
Personally, I believe that an important upside movement will be confirmed only when the WTI Oil price makes a valid breakout above the $27.68 level and above the monthly Pivot Point ($29.14).
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WTI Oil is under pressure, a valid breakdown below the $20.04 level and below the 50% Fibonacci line will confirm a further drop. As I've said higher, a rejection from the 50% line will signal a potential increase in the short term, the near-term targets are seen at the $27.68 and at the Pivot Point ($29.14).
The price could be attracted by the median line (ML) of the descending pitchfork if it stabilizes above the $20.04 per barrel and above the 50% dynamic support. We may have a long opportunity after another false breakdown with great separation below the mentioned support levels.
