WTI Price Analysis: Oil buyers stay hopeful beyond $77.80 despite pullback from 13-day-old resistance
- WTI crude oil prints the first daily loss in three while retreating from short-term key resistance line.
- Convergence of 200-day EMA, 50-day EMA puts a floor under the Oil Price.
- Market’s cautious optimism also favors energy buyers despite mild losses.
WTI crude oil remains mildly offered near $79.80 as it takes a U-turn from a two-week-old resistance line to print the first daily loss in three heading into Monday’s European session. In doing so, the Black Gold also justifies the bearish MACD signals while struggling to cheer the softer US Dollar, as well as China-inspired risk-on mood.
That said, a downward-sloping resistance line from August 09, around $80.15 by the press time, restricts the immediate upside of the energy benchmark.
Given the downbeat MACD signals and the latest retreat from the key resistance line, the Oil price may witness further pullback in the price.
However, a convergence of the 200-day and 50-day Exponential Moving Averages (EMA), around $77.80 at the latest, appears a tough nut to crack for the Oil bears.
Also acting as a short-term downside filter is the early July peak of around $77.15, a break of which will quickly drag the WTI crude oil price towards the high marked in May around d $74.70.
On the flip side, a daily closing beyond the stated resistance line, close to $80.15 will aim for the previous weekly high of around $81.70 before April’s top of $83.40.
In a case where the black gold remains firmer past $83.40, the current monthly high of around $84.35 will act as the last defense of the WTI sellers.
WTI Price: 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.
