WTI Price Analysis: Under pressure after hanging man candle

• WTI's daily chart shows an increase in selling pressure. 
• The black gold risks falling to lows seen Thursday. 

West Texas Intermediate (WTI) crude, the North American oil benchmark, is trading 0.15% lower on the day at $40.90 per barrel.

The black gold created a classic long-tailed hanging man candle on Thursday. 

The pattern indicates a sharp increase in the selling pressure – a sign of bears testing bulls' resolve – and is considered an early sign of impending price drop, especially when it appears following a notable price gain, which is the case here. WTI has created a hanging man pattern following a rise from $36.63 to levels above $41.00

As such, the path of least resistance now appears to be on the downside. The immediate support is seen at $39.22 (Thursday's low). 

Alternatively, a close above $41.72 (Sept. 18 high) would imply a bullish breakout and open the doors for a re-test of the August high of $43.78. 

Daily chart

Trend: Bearish

Technical levels