- WTI consolidates Friday’s heavy losses around September’s low.
- Previous support from November 2020 challenges corrective pullback, bearish MACD signals also favor sellers.
- March’s top offer immediate support, 100-DMA adds to the upside filters.
WTI licks Friday’s wounds of 13% slump while defending the $70.00 threshold during Monday’s initial Asian session.
Even so, the black gold keeps the previous day’s downside break of the yearly support line, now resistance, while keeping the sellers on the driver’s seat. Adding to the bearish bias is the MACD line that stays deep down inside the red territory.
That said, March month’s high of around $67.85 offers immediate support to the commodity prices ahead of 38.2% Fibonacci retracement (Fibo.) of November 2020 to October 2021 upside, close to $65.40.
It should be noted, however, that September’s swing low near $61.80 becomes a tough nut to crack for WTI bears.
On the contrary, a daily closing beyond the stated support-turned-resistance around $71.35 needs validation from the 100-DMA level of $73.90 and the $74.00 threshold to recall the buyers.
Following that, November 22 low near $74.65 and July’s top of $76.40 will act as additional resistance for the bulls to cross.
WTI: Daily chart
Trend: Further weakness 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0400 ahead of US data
EUR/USD stays in positive territory above 1.0400 in the second half of the day on Tuesday. The data from the Euro area showed that the annual HICP inflation rose to 2.4% in December, as expected. Investors await ISM Services PMI and Job Openings data from the US.
GBP/USD retreats from weekly highs, trades below 1.2550
GBP/USD loses its traction and trades below 1.2550 after rising toward 1.2600 earlier in the day. The cautious market stance helps the US Dollar (USD) limit its losses and caps the pair's upside as focus shifts to key macroeconomic data releases from the US.
Gold extends recovery beyond $2,650 amid increased caution
Following Monday's indecisive action, Gold gains traction and rises to the $2,660 area. XAU/USD benefits from mounting caution ahead of critical United States data, with the December ISM Services PMI next on the docket.
Bitcoin Price Forecast: BTC holds above $100K following Fed’s Michael Barr resign
Bitcoin edges slightly down to around $101,300 on Tuesday after rallying almost 4% the previous day. The announcement of Michael S. Barr’s resignation as Federal Reserve Vice Chair for Supervision on Monday has pushed BTC above the $100K mark.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.