WTI Crude oil forms shooting star candle

The Shooting Star candlestick formation is viewed as a bearish reversal candlestick pattern that typically occurs at the top of the uptrends. The long upper shadow of the Shooting Star implies that the market tested to find where resistance and supply was located.   

Considering daily time frame, near 100-day EMA the WTI Crude oil forms reversal shooting star candle on January 31, 2018, which suggests supply was located near 100-day EMA. Among the momentum indicators, the stochastic has recently given negative crossover and there is negative divergence spotted recently, which is negative for crude oil prices. The 14-period day RSI cooled off after touching nearby  65 zone and at present, it is quoting around 56.76.  

In near term, 21-day EMA is likely to act as immediate support, which is currently placed at US$ 52.18, failure to hold this support would lead to further correction up to the level of US$50.30. While on the upside, 100-day EMA is the major hurdle for crude oil which is currently placed at US$56.23, a follow-through move above this level would lead to an extension of the pull-back toward 200-day EMA.