West Texas Intermediate (WTI), the North American oil benchmark, is trading largely unchanged on the day near $39.50 at press time, having hit a low of $39.12 an hour ago.
The black gold has found dip demand below $39.30 for the third straight day. While prices fell by 4% on Sept. 21, the sellers could not establish a foothold below $39.00.
The repeated bear failure near $39.00 could invite buying pressure, although the technical outlook would turn bullish only after prices rise above the lower high of $41.72 created on Sept. 18.
Alternatively, a close below $39.00 would shift the focus back to the bearish Doji reversal pattern confirmed by Monday’s 4.3% decline and open the doors for a re-test of the Sept. 8 low of $36.13.