WTI Crude Oil Forms Major Head and Shoulders BreakdownHi guys.
WTI has formed a massive Head and Shoulders pattern on the weekly timeframe, signaling a potential long-term bearish reversal structure.
After the right shoulder completed, price decisively broke below the neckline around the $67–$70 range, confirming the pattern breakdown. This neckline now acts as a major resistance zone and aligns closely with the descending trendline, adding confluence to the bearish bias.
The recent rebound appears to be a corrective pullback toward the neckline or flip area, before potentially continuing to the downside. As long as WTI remains below the descending trendline and neckline zone, bearish momentum is expected to dominate.
The projected measured move target from the pattern suggests two possible support objectives:
First target: around $49.40, corresponding to prior consolidation and structural support.
Final target: near $43.40, aligning with historical demand and the full measured move projection from the Head and Shoulders formation.
Overall, unless WTI reclaims and sustains above the $70 area, the medium- to long-term bias remains bearish, with corrective rallies likely to face selling pressure.
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