Crude Oil WTI price has been travelling downwards since May 21. June has stabilised the price in a tight range between $53.4 and $53.7. RIght now the price is sitting at the mid-Bollinger line. We can see also the shrinkage of the Bollinger bands that is the indication of descending volatility, typical of sideways movements.
The MACD shows a slightly bullish bias, but in negative territory, in a similar way it did in the previous (end of May) consolidation channel. If the stocks data to be released today come as expected the most probable price action is the downside. That is so because the current channel shows no bullish strength. In fact, it has retraced the initial bullishness created by the candle on June,3. Therefore, it is highly probable this channel to be a continuation pattern.
Traders should stalk for a breakout to the downside. Breakouts to the upside may be suspicious. Also, the $54.7 resistance level makes its reward-to-risk factor too small.
The next support for the price is $50. The current resistance level is $54.7.
Click on the chart (arrowed square at the top right) to enlarge it.