Crude Oil Technical Analysis: A closer examination of the technical structure for WTI crude oil reveals a distinctly bearish configuration that had been established on the chart. This pattern emerged decisively following a significant rejection from the local high of $66.50, a peak from which the market lost its upward momentum. The subsequent price action organized itself into a well-defined descending price channel, often referred to as a "southern" channel, which effectively captured the new trend of lower highs and lower lows. Within the bounds of this bearish channel, the market proceeded to delineate two clear downward waves. The first wave established the initial leg of the decline, while the second wave began to form, indicating a continuation of the selling pressure. However, a critical technical nuance was observed at that juncture: the formation of the second downward wave remained incomplete. This incompletion was evident from the fact that the price had not yet fulfilled its full potential within the channel by descending all the way to the primary support line, which is defined by the channel's lower boundary. This presented a specific and pending technical objective for the market. It was within this context that the previous trading recommendation was formulated. At the precise time of that analysis, WTI oil was being traded at the level of $59.76. This price point was identified as a strategic location to initiate selling activity, based on the anticipation that the incomplete second wave would need to conclude its journey. The logical and measured target for this bearish move was the lower boundary of the southern price channel. The projected intersection point for this critical support level was identified at approximately $58.00. Therefore, the medium-term trading outlook explicitly advised entering short positions with the clear objective of capturing the downward move from the entry level near $59.76 down to the projected target at $58.00. This trade setup was fundamentally based on the principle of the market completing its unfinished technical pattern, allowing for a structured approach to capitalizing on the prevailing bearish momentum within the defined channel. The strategy relied entirely on the price fulfilling its expected path within the established technical structure, targeting the support line that had not yet been tested by the second wave of decline.
