- Oil prices are juggling below 61.8% Fibo retracement at $87.00.
- Declining 20-and 50-period EMAs signal more weakness ahead.
- A bearish range shift by the RSI (14) will trigger the downside momentum.
West Texas Intermediate (WTI), futures on NYMEX, has demolished the firmer rebound move, recorded on Monday. The black gold picked significant bids below $82.00 and moved higher, however, the pullback move concluded sooner and the asset resumed its downside journey. The oil prices are hovering around $83.00 and are expected to surrender the same.
On a daily scale, the asset has successfully established below the 61.8% Fibonacci retracement (placed from 2 December 2021 low at $62.34 to March 12 high at $126.51) at $87.00. Usually, an establishment below 61.8% Fibo retracement indicates the completion of the entire swing on the downside ahead.
The 20-and 50-period Exponential Moving Averages (EMAs) at $87.00 and $91.25 respectively are declining, which adds to the downside filters.
Also, the Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00, which will pace up the downside momentum.
A slippage below the monthly low at $80.96 will drag the asset towards 29 December 2021 high at $77.20, followed by 9 December 2021 high at $73.17.
On the contrary, the asset will regain strength if it oversteps the round-level resistance of $90.00. This will send the oil prices towards a 50% Fibo retracement at $94.32 and the psychological resistance at $100.00.
WTI daily chart
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