WTI technical analysis: Falling wedge support, oversold RSI question further declines

• WTI repeatedly refrains from defying the bullish technical pattern amid oversold RSI.
• $54.65 becomes the key upside resistance.

With the support-line of a short-term falling wedge limiting WTI declines, amid oversold RSI, the energy benchmark takes the rounds to $53.60 ahead of the Europe market’s open on Wednesday.

While formation support around $53.20 acts as an immediate rest, June 18 low near $51.70 and the June month bottom close to $50.70 can please sellers if overlooking oversold conditions of 14-bar relative strength index (RSI).

In a case prices slip below $50.70, $50.00 round-figure and $49.50 could entertain bears.

Alternatively, an upside break of $54.65, comprising resistance-line of a bullish technical pattern and 61.8% Fibonacci retracement of June-July rise, can trigger the black gold’s run-up towards a week’s high near $58.85 with 50% Fibonacci retracement level of $55.85 likely being an intermediate halt.

WTI 4-hour chart

Trend: Pullback expected