WTI Crude has been rallying and and I discussed the bullish outlook yesterday (8/12): WTI Crude Oil is building some bullish momentumWTI Crude 4H Chart 8/12(click to enlarge)New high with strength:- As we can see in the 4H chart, price did indeed push into a new high on the month.- The latest upswing was sharp. - This indicates a strong market, and unless we see some evidence of strong resistance, we should respect the bullish momentum. Reasons to fade:- Despite the noted sharp rally, we are starting to see resistance around the 44.00 handle. - Note a bearish divergence with the RSI, which means the bullish momentum is stalling. - Also note that around 44.50 is a previous support pivot that can also been treated as resistance. - 44.50 is also reinforced by the 200-period simple moving average (SMA) for the 4H chart. Anticipating resistance:I think the bullish momentum is slowing, and will give the market more confidence to fade here in the 44-44.50 area. I expect to see some resistance here at least in the short-term (during the next couple of sessions). Next resistance:If I am wrong and price pops up above 44.50, the 45.85-46 area will be the next critical resistance. I am anticipating a pullback at least towards 42.00. Then, I want to see what happens, and assess whether USDWTI is ready to continue the prevailing downtrend, or if it has indeed entered a period of consolidation, in which we will see oil oscillate between a range such as 40 and 45. Time for consolidation?The thing is, looking back at oil price action, we know it doesn't like to sit in a range for long in the short-term, but that doesn't mean it won't happen - after all, the fact that we haven't seen a sideways consolidation could mean that one is due.