The WTI price began the year at around $75 per barrel. Last week, the WTI price surpassed $90 per bbl for the first time since 2014. It was also the last year when WTI prices were higher than $100 per barrel.
The current structure of oil suggests the construction of a large uptrend that moves within the green channel.
On the current chart, we see that the price has been rapidly and confidently creeping upwards from the lower green line to the upper green line for more than a month. Recently, the price touched the upper green wall. We see that the bulls did not break through the resistance line, and the price began to move in the opposite direction.
It is likely that after a long bullish growth, bears began to dominate the market. Thus, market participants can expect a decline within a small yellow channel in the next coming trading weeks. Most likely, the bears are targeting the support level of 85.16, which is located on the lower green line.
Alternatively, the price of oil may rise a little more. This is possible in case of a breakdown of the resistance level 91.56, which is located on the upper yellow wall. With a successful breakdown of this level, the price may rise to the next resistance level, which is located on the upper green line.
When confirming the bearish movement of the market, it is recommended to consider opening sales transactions. With an upward price movement, we can continue to open long positions.