WTI Price Analysis: Bears firming grip below $58.00
|- WTI struggles to extend corrective pullback from Tuesday’s low.
- 100-HMA, immediate falling trend line guards short-term upside.
- Previous support line, Wednesday’s multi-month high offer tough resistance.
WTI stays pressured below $58.00, currently around $57.80, during Friday’s Asian session. The oil benchmark dropped to the lowest in four days while snapping over a week-long upward trajectory. In doing so, the quote broke 100-HMA to the downside.
Other than the 100-HMA breakdown, a descending trend line from Wednesday also suggests further consolidation of gains by the oil traders.
As a result, a horizontal area comprising multiple lows marked during Monday and Tuesday, around $57.20, seems to return to the chart.
However, any further downside will be challenged by the 200-HMA level of $56.68, which if ignored should direct WTI bears to the monthly low surrounding $51.60 wherein February 04 bottom near $55.20 can act as an intermediate halt.
Alternatively, 100-HMA and the aforementioned immediate resistance line, respectively around $58.00 and $58.50, restrict the black gold’s short-term advances.
Also acting as the key upside hurdle is $58.80 comprising the previous support line from February 04 as well as the recently flashed 13-month high.
WTI hourly chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.