WTI Oil: Price Stabilising?

WTI dropped sharply tanking from its top at 65.66 in early Jan to reach a low at 11.10 late Apr. It is obvious that WTI is in a downtrend making lower lows and lower highs. Recent price action, however, suggests the selling pressure has weakened. Although price has made a lower low but MACD (which is a momentum indicator) has traced a higher low setting up a bullish divergence indicating the downtrend is likely to end.

WTI Oil Daily Chart 

With the oversupply situation still unresolved coupled with the low demand caused by the current Covid-19 pandemic,  I believe the WTI trend will not reverse to uptrend anytime soon but will just change from downtrend to sideways with WTI trading within a low price range possibly between 10 and 20.

Disclaimer:

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.