WTI Crude saw a dramatic slide on the 7th June, and price has failed to pull back any losses in the last few days of trading.
The OPEC situation appears to be at stalemate, with no tangible plan in place to steady the price of crude oil in the short term.
The chart above shows we started the down trend on this particular downward leg on the 24th May with only the pullback on the 24th May and 6th of June showing any signs of buying activity.
So where does this leave us? The move down has stalled around the $45.60 mark where we have seen signs of a small recovery. This recovery may be short lived though as the chart is displaying a bearish flag pattern. This bearish flag is showing all the signs of a big sell off looming. We must however remain cautious as any break if this weeks highs could see us rally back to 200SMA up around $50.
Any break of the flag pattern should be seen as a signal to short with stops at $46.70. With regards to profit targets $44 appears to be the smart play, however for those longer term traders $40 does seem possible with the correct setup.
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