Oil Price Analysis: The price action seems indecisive at these elevated levels

• WTI is trading 0.26% lower on Thursday as some of the bids have disappeared.
• The size of the bullish candles seem to be reducing at current levels.

WTI 4-hour chart

WTI is still in a bull trend on the chart below but at these elevated levels, it seems the price seems to be very jittery. Previously within this trend when the price moved higher the size of the bullish candles were bigger. The next resistance is at the red line at the previous wave high of USD 41.64 per barrel. 

If the price does move lower then the USD 40 per barrel level could be a psychological support area. Below that the black trendline could also stem the losses. The previous wave low stands at USD 39.00 per barrel and if that breaks it could signal a trend change as it would make a lower high lower low wave pattern. 

The indicators are both pretty positive at the moment but they could turn. The Relative Strength Index is moving toward the 50 area at the moment. It looked like the indicator could hit the overbought positive zone but it has turned over the last few candles. The MACD signal lines and histogram are about the zero level. The histogram bars are getting smaller and smaller but it has not switched over to the downside just yet. 

Overall on the higher timeframes, this is still an uptrend. It would be important to look for support levels or see if the bulls can come in again to break out of the red resistance zone. If there is to be a reversal the lower high lower low pattern would be a good first signal. 

Additional levels