WTI oil finds resistance at the 50.00 level

WTI oil was in a well-defined consolidation since the beginning of December up to recently, between the 52.00 level and the 54.00 level. On Wednesday the price of WTI oil breaks below the 52.00 level after the US oil inventories came out well above the expected reading and causes the price of crude to drop. The fall takes the price of WTI oil to the 50.00 level, which initially acts as support, but yesterday the drop continues and oil reaches a low around the 48.54 level, breaking below its 200 day EMA, blue line, around the 49.38 level. Today oil tried to claim back some of the ground that it lost during the last couple of days, but once it got to the 50.00 level, that level changed from support to resistance and the price drops again from that level. If the price of WTI oil drops below the 48.54 level, then the bearish momentum may accelerate even more and it could have the road clear all the way to the low at the 44.50 zone. To the upside, above the 50.00 level, the next important resistance is at the 52.00 level, which could change its role as a support to a resistance.