fxs_header_sponsor_anchor

News

WTI Price Analysis: Bears poke $76.00 with eyes on further downside

  • WTI remains pressured around the monthly low, extends Friday’s losses.
  • Six-week-old descending trend line can test the bears on the way to sub-$70.00 area.
  • Double-top confirmation adds strength to the bearish bias.
  • Buyers need to cross $81.30 to retake control.

WTI crude oil price stays depressed as it flirts with $76.00 during early Monday. In doing so, the black gold drops for the second consecutive day while highlighting mid-November’s confirmation of the double-top bearish chart pattern.

Even so, the nearly oversold Relative Strength Index (RSI), placed at 14, highlights a downward-sloping support line from October 18, close to $74.30, as immediate key support.

Following that, a south-run towards the theoretical target for the “Double Top” confirmation, near $69.80, can’t be ruled out. It’s worth noting that the $70.00 round figure may act as a buffer during the anticipated fall.

On the flip side, recovery moves may initially need to cross a two-week-old resistance line near $79.60 to convince the short-term buyers.

However, a horizontal line around $81.30, known as the confirmation level for the “double top” bearish chart pattern, appears crucial for WTI crude oil buyers as it holds the key to their conviction.

In a case where the crude oil buyers manage to keep the reins past $81.30, the odds of witnessing a run-up towards $93.00, comprising the monthly high and October’s peak, will be in focus.

WTI: Four-hour chart

Trend: Bearish

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.