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Crude oil prices recently experienced a decline in intraday trading, taking profits from previous gains. This pullback aims to establish a higher bottom, which could provide a foundation for the necessary positive momentum to fuel a potential recovery. Additionally, this move helps alleviate some of the overbought conditions indicated by the Relative Strength Index (RSI), which has shown some negative signals.
The decline occurs within the context of a positive technical pattern formed during the last bearish wave on the short-term chart — an inverted head and shoulders pattern. This pattern is further supported by crude oil trading above the 50-period Exponential Moving Average (EMA50), reinforcing the possibility of a rebound.
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