WTI Price Analysis: Respects Dragonfly Doji bullish candlestick to snap three-day downtrend
- WTI remains mildly bid after consecutive three days of downbeat performance.
- Bullish candlestick formation, sustained bounce off 21-DMA favor buyers.
- Previous support line, 50-DMA challenges immediate upside ahead of the monthly high.
WTI crude oil prints the first daily gains in three despite making rounds between $78.50 and $79.00 during early Friday.
In doing so, the black gold respects the Dragonfly Doji bullish candlestick, marked the previous day, amid bullish MACD signals.
Also favoring the upside bias is the quote’s successful rebound from the 21-DMA, around $76.60 by the press time.
However, the support-turned-resistance line from early December, near $79.65 at the latest, precedes the $80.00 round figure to restrict the immediate upside of the energy benchmark.
Additionally challenging the WTI bulls is the 50-DMA hurdle surrounding $81.00 and the monthly peak of $83.30.
In a case where the commodity prices remain firmer past $83.30, the odds of witnessing a run-up toward the $90.00 threshold can’t be ruled out.
On the flip side, the sellers need validation from the 21-DMA support of $76.60 to aim for the mid-December lows surrounding $73.50.
If at all the crude oil price weakens below $73.50, the monthly low around $70.30 and the $70.00 psychological magnet will gain the market’s attention as a break of which could favor WTI bears to aim for late December 2021 bottom near $66.10.
WTI: Daily chart
Trend: Limited upside 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.
