Oil Price Analysis: WTI has rejected $40.50 again but the chart still looks positive for now

• WTI trades 0.26% higher despite some recent weakness.
• There is now an interesting flag-like pattern on the hourly chart.

WTI 1-hour chart

The oil complex had been hit by the recent dollar strength much like many of the other commodities. WTI has managed to bounce back after the OPEC+ group announced the output cuts will continue till December. DoE inventory levels also produced a draw today (Wednesday) but it was not as large as some analysts had been expected but a draw is good nevertheless. 

The recent price action has moved into a flag type formation. A break in either direction would be a good signal for the future path but the topside break seems more likely at the moment. 

The blue resistance line at USD 40.50 per barrel is a firm. The market has used the zone on multiple occasions on this chart alone. If it breaks the next key level is the previous wave high. If that breaks then its game on for the bulls. 

The indicators are looking mixed. The MACD histogram is green and the signal lines have just crossed to the upside. The Relative Strength Index is just under the 50 line after a recent surge high and a break above the 50 line would be positive. 

Additional levels