WTI Price Analysis: Bulls consolidate below $72.50, downside risk remains


  • WTI extends the previous day’s decline on profit taking.
  • Spinning top near the YTD high builds up downside pressure.
  • Momentum oscillator tilts in favor of bears, awaiting confirmation.

Crude oil gathers downside momentum with substantial losses in the Asian session. After touching YTD high at $74.10, prices fell sharply to close near $72.89.

At the time of writing, WTI is trading at $72.30, down 0.28% for the day.

WTI 4-hour chart

On the 4-hour chart, WTI has been consolidating in a rectangle formation in the range of $72.20 and $74.00 for the past week.

If WTI slips below the session’s low at $72.25, then it could retest the $71.65 horizontal support level followed by the low of June 21 at $70.69.

The Moving Average Convergence Divergence (MACD) indicator reads above the midline with a bearish crossover. Any downtick in the MACD would further intensify the selling pressure toward the $70.00 horizontal support level.

Alternatively, if prices move above the  $72.50 key psychological mark, then it could crawl back to the $73.50 horizontal resistance level followed by the previous day’s high at $74.16.

WTI bulls would then likely march in the direction of the levels last seen in October 2018 at the high of $76.80.

WTI additional levels

WTI

Overview
Today last price 72.29
Today Daily Change -0.22
Today Daily Change % -0.30
Today daily open 72.51
 
Trends
Daily SMA20 70.94
Daily SMA50 67.04
Daily SMA100 64.19
Daily SMA200 54.69
 
Levels
Previous Daily High 74.17
Previous Daily Low 72.36
Previous Weekly High 74.05
Previous Weekly Low 70.69
Previous Monthly High 67.42
Previous Monthly Low 61.53
Daily Fibonacci 38.2% 73.05
Daily Fibonacci 61.8% 73.48
Daily Pivot Point S1 71.86
Daily Pivot Point S2 71.21
Daily Pivot Point S3 70.05
Daily Pivot Point R1 73.66
Daily Pivot Point R2 74.82
Daily Pivot Point R3 75.47

 


 

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