WTI Price Analysis: Extends pullback from 21-DMA below $76.00
- WTI remains pressured around intraday low, defends previous day’s U-turn from two-week top.
- Downbeat RSI conditions, pullback from short-term key DMA hints at further weakness.
- 11-week-old bullish triangle gains major attention, highlighting $78.20 as the key hurdle.
WTI crude oil extends the previous day’s pullback from a two-week top as it drops to $75.70 while refreshing intraday low during early Friday morning in Europe.
The black gold’s latest weakness could also be linked to the failure to cross the 21-DMA, around $77.00. Given the downbeat RSI conditions, the WTI crude oil price is likely to witness further selling pressure.
However, November’s low of around $73.65 could act as immediate support for the energy benchmark.
Following that, a downward-sloping trend line from September, forming part of the bullish triangle formation around $69.80, will gain the bear’s attention.
In a case where WTI remains weak past $69.80, the December 2021 low near $62.35 should lure the commodity sellers.
Alternatively, the 21-DMA hurdle surrounding $77.00 guards the quote’s immediate recovery, a break of which could quickly propel the WTI towards the upper line of the stated triangle, near $78.20.
Should the WTI buyers manage to keep the reins past $78.20, the same will confirm the bullish chart pattern and suggest further advances of the quote towards the theoretical target surrounding $101.00.
During the run-up, the previous monthly peak of $92.90 and the August month high near $97.30 can act as buffers.
WTI: Daily chart
Trend: Limited downside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
