WTI Oil futures battle with 61.8% Fibonacci [Video]

• WTI futures retreat after hitting 2-month high.

• Violate 200-day SMA but 61.8% Fibo pauses decline.

• Momentum indicators weaken but remain positive.

WTI oil futures (March delivery) had been staging a comeback from the December bottom of 68.00, jumping above both the 50- and 200-day simple moving averages (SMAs). However, the advance got rejected a tad below the 50.0% Fibonacci retracement of the $64.20-$95.02 upleg, albeit the 61.8% Fibo prevented further retreats.

Should bearish pressures persist and the price dive below the 61.8% Fibo of $75.97, the November low of $72.40 could act as the first line of defence. Sliding beneath that floor, the price may descend towards the 78.6% Fibo of $70.80. A successful break below that zone could pave the way for the $66.95-$68.00 support range defined by June lows and the recent six-month bottom.

On the flipside, if buyers re-emerge and propel oil above the 200-day SMA, immediate resistance could be found at the 50.0% Fibo of 79.61. Further upside attempts could then stall around the 38.2% Fibo of 83.25. Conquering this barricade, the bulls could attack the 23.6% Fibo of 87.75.

In brief, WTI oil futures experienced a downward spike following their rejection slightly below the $80.00 psychological mark, but the 61.8% Fibo has been acting as a strong floor. Hence, a clear close beneath the latter could accelerate the recent retreat.