WTI Price Analysis: Slides towards $78.30 on breaking weekly support


  • WTI crude oil refreshes weekly low as it breaks short-term key support.
  • Convergence of 50-SMA, 61.8% Fibonacci retracement restricts immediate downside.
  • Two-week-old ascending support line, 76.85 support confluence to test the bears.
  • Upside momentum remains elusive below $81.00 round figure.

WTI takes offers to renew weekly bottom around $78.50 during early Thursday in Europe. In doing so, the black gold bears cheer the downside break of a one-week-old ascending trend line support, now resistance, amid bearish MACD signals and downbeat RSI conditions.

It’s worth noting, however, that a convergence of the 50-SMA and the 61.8% Fibonacci retracement level of the quote’s weakness during early December, near $78.30, appears a tough nut to crack for the short-term WTI bears.

In a case where the energy benchmark remains weaker past $78.30, an upward-sloping support line from January 05, close to $77.50, could probe the oil bears.

Also acting as the key downside filter is the $76.85-80 support confluence that encompasses the 200-SMA and the 50% Fibonacci retracement level of the aforementioned move in December.

It should be observed that the RSI is declining towards the oversold territory and hence the quote’s downside past $76.80 appears difficult.

Meanwhile, recovery moves need to cross the support-turned-resistance line, close to $80.30, to recall the WTI bulls.

Even so, a horizontal area comprising the levels marked during late December and early January, close to $81.00-10, may further check the upside momentum.

WTI: Four-hour chart

Trend: Further downside expected

WTI US OIL

Overview
Today last price 78.59
Today Daily Change -0.96
Today Daily Change % -1.21
Today daily open 79.55
 
Trends
Daily SMA20 78.02
Daily SMA50 78.35
Daily SMA100 81.94
Daily SMA200 92.21
 
Levels
Previous Daily High 82.67
Previous Daily Low 79.33
Previous Weekly High 80.25
Previous Weekly Low 73.89
Previous Monthly High 83.3
Previous Monthly Low 70.27
Daily Fibonacci 38.2% 80.61
Daily Fibonacci 61.8% 81.39
Daily Pivot Point S1 78.37
Daily Pivot Point S2 77.19
Daily Pivot Point S3 75.04
Daily Pivot Point R1 81.7
Daily Pivot Point R2 83.85
Daily Pivot Point R3 85.03

 

 

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