WTI Price Analysis: Regains $78.00 within weekly rising wedge
- WTI seesaws inside a choppy range after snapping a three-day uptrend the previous day.
- Bearish chart formation, and sluggish oscillators keep sellers hopeful.
- 200-HMA adds to the downside filters before targeting late 2022 low.
WTI crude oil picks up bids to regain $78.00 during early Friday, following its U-turn from a one-week high to print the first daily loss in four on Thursday. It’s worth noting that the black gold’s latest inaction could be linked to sluggish MACD signals and steady RSI (14).
Even so, a one-week-old rising wedge bearish chart formation, currently between $77.30 and $79.30, keeps the Oil sellers hopeful, especially after the previous day’s retreat from the 61.8% Fibonacci retracement level of the quote’s downturn from January 23 to February 03.
That said, a clear downside break of the $77.30 support will need validation from the 200-Hour Moving Average (HMA) support of $76.96 to convince the energy bears.
Following that, the monthly bottom of $72.50 can act as a buffer during the south run targeting the latest multi-month low surrounding $70.30, marked in December 2022. It should be observed that the $70.00 round figure could probe the WTI sellers past $70.30.
Alternatively, WTI recovery could aim for another battle with the aforementioned key Fibonacci retracement hurdle of around $78.80.
Even if the commodity manages to cross the $78.80 hurdle, the stated wedge’s top line, close to $79.30 at the latest, will precede the $80.00 psychological magnet to challenge the quote’s further upside.
Overall, WTI crude oil remains on the bear’s radar despite the latest inaction.
WTI: Hourly chart
Trend: Further 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.
