WTI Price Analysis: Clings to 200-bar SMA around $40.00 in Asia
|
- WTI struggles to extend recovery moves from $39.48.
- Falling trend line from September 04 also challenges the oil bulls.
- Five-week-old horizontal support will lure bears below the $39.00 threshold.
WTI picks up bids near $40.23 while heading into Thursday’s European session. In doing so, the black gold confronts 200-bar SMA after its positive performance on Wednesday.
While normal RSI conditions and risk-on mood favors the commodity to cross the immediate upside hurdle near $40.25, it’s further advances will be tamed by a falling trend line from the early September, currently around $40.95.
During the quote’s break past-$40.95, the $41.00 round-figure and September 18 top close to $41.45 can entertain the oil buyers.
On the contrary, a downside break of yesterday’s low of $39.48 can quickly direct WTI sellers toward a horizontal region between $38.70 and $38.80 that comprises multiple technical levels since September 04.
Also acting as the key support will be the monthly low of $36.79 and the September month’s bottom surrounding $36.40.
WTI four-hour chart
Trend: Further recovery expected
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.