• WTI consolidates Friday’s losses near $56.00 a barrel.
  • The level to beat for bears is the 56.00 handle.

Crude oil daily chart

The crude oil West Texas Intermediate (WTI) is currently trading near $56.00 a barrel and the 50/100 DMAs consolidating Friday’s drop.

Crude oil four-hour chart

WTI is correcting the bear breakout below the 200 SMA on the four-hour chart. The market seems vulnerable to the downside. However, more consolidation might be on the cards in the medium term.

Crude oil 30-minute chart

The is trading below its main SMAs, suggesting a bearish bias in the near term. Resistances are seen at the 56.40 level and the 57.00 handle. Sellers are likely looking for a daily close below the 56.00 level to drive the price south towards the 54.50 level.

Additional key levels