WTI Price Analysis: 200-bar EMA challenges rising wedge confirmation near $40.00

• WTI remains depressed after the recent U-turn from $40.60.
• MACD signals join the confirmation of a bearish chart pattern to favor the sellers.
• Bulls will have to cross $41.00 to regain the controls.

WTI declines to $40.23, down 0.83% on a day, ahead of Tokyo open on Monday. The black gold’s downside break of an ascending trend line from June 25 confirmed the rising wedge bearish formation but 200-bar SMA seems to challenge the sellers off-late. However, MACD fails to support the bulls than hence the quote could be watched closely for further selling.

In doing so, a clear break of 200-bar EMA level of $39.72 will be the key, which in turn will help the bears attack July 10 low near $38.70 during the further downside.

Should there be additional weakness past-$38.70, the late-June bottoms surrounding $37.20 may lure the sellers.

Meanwhile, an upside clearance of the said support-turned-resistance line, at $41.00 now, will aim for a descending trend line from July 21, at $41.60.

Should the bulls manage to cross $41.60, they can challenge the previous month’s top surrounding $42.52 while also targeting February’s low near $44.00.

WTI four-hour chart

Trend: Pullback expected