WTI Price Analysis: Reverses from three-week high towards previous resistance surrounding $78.50


  • WTI takes offers to refresh intraday low, snaps four-day uptrend.
  • RSI’s retreat from overbought territory, sluggish MACD favor latest declines.
  • Five-week-old previous resistance, 200-SMA restrict short-term downside moves.
  • Oil bulls have a bumpy road to travel in case of fresh recovery.

WTI crude oil returns to the bear’s radar, after a four-day winning streak, as the energy benchmark takes a U-turn from a three-week high to print 0.70% intraday losses around $79.30 during early Monday.

In doing so, the black gold traces the RSI (14) as it reverses from the overbought territory. However, the sluggish MACD signals hint at the lack of momentum and hence challenge the Oil bears.

Additionally testing the commodity’s latest weakness could be a downward-sloping support line from January 27, previous resistance around $78.45.

Even if the WTI bears manage to conquer resistance-turned-support of near $78.45, the 200-SMA and an ascending support line from late February, respectively near $78.10 and $77.70, could restrict the quote’s further downside before convincing the sellers.

Meanwhile, recovery moves may initially aim for the $80.00 psychological magnet before targeting the five-week-long horizontal resistance area surrounding $80.65-70.

Following that, a horizontal resistance zone comprising tops marked since January 18, close to $82.65-70, could challenge the WTI bulls before giving them control.

Overall, WTI crude oil is likely to witness further downside but the bears need to remain cautious unless witnessing a clear break of the $77.70.

WTI: Four-hour chart

Trend: Limited downside expected

Additional important levels

Overview
Today last price 79.26
Today Daily Change -0.59
Today Daily Change % -0.74%
Today daily open 79.85
 
Trends
Daily SMA20 77.46
Daily SMA50 78.02
Daily SMA100 79.78
Daily SMA200 87.76
 
Levels
Previous Daily High 79.93
Previous Daily Low 75.93
Previous Weekly High 79.93
Previous Weekly Low 75.05
Previous Monthly High 80.75
Previous Monthly Low 72.5
Daily Fibonacci 38.2% 78.4
Daily Fibonacci 61.8% 77.45
Daily Pivot Point S1 77.21
Daily Pivot Point S2 74.57
Daily Pivot Point S3 73.21
Daily Pivot Point R1 81.21
Daily Pivot Point R2 82.57
Daily Pivot Point R3 85.21

 

 

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