WTI technical analysis: Down 0.40%, charts favor upside

• WTI oil is looking north with falling channel breakout on the daily chart. 
• A break above $56 could be seen during the day ahead. 

WTI oil is currently trading at $55.50 per barrel, representing 0.40% losses on the day.

The decline, however, could be short-lived and prices could rise well above $56.00 during the day ahead, as the daily chart is reporting a falling channel breakout.

The black gold closed at $55.69 on Tuesday, confirming an upside break of a bearish channel represented by trendlines connecting the July 15 and July 31 highs and July 18 and Aug. 7 lows.

That channel breakout indicates the sell-off from the July 15 high of $60.89 has ended and the bulls have regained control.

Further, the black gold created a bullish marubozu candle on Tuesday, validating the spinning bottom candle (an early sign of bull reversal) created on Monday.

All-in-all, the path of least resistance is now to the higher side. The bullish case would weaken if black gold drops below Tuesday's low of $53.71.

Daily chart

Trend: Bullish

Pivot points