WTI Price Analysis: Bears take a breather on the way to $73.20
|- WTI crude oil prices dribble around weekly low after three-day downtrend.
- U-turn from 21-DMA, bearish MACD signals favor sellers.
- 10-week-old descending trend line lures bears, monthly resistance line adds to the upside filters.
WTI crude oil bears await more clues as they pause around $74.80, the lowest level in a week, during Wednesday’s sluggish Asian session. In doing so, the commodity price pauses the three-day downtrend.
That said, the black gold’s sustained U-turn from the 21-DMA and bearish MACD signals keep the sellers hopeful. However, a downward-sloping trend line from late September, around $73.20 appears a tough nut to crack for the bears. Adding strength to the $73.20 support is the nearly oversold RSI line, placed at 14.
It should be noted that the previous monthly low and Tuesday’s bottom, respectively around $73.65 and $73.55, may act as immediate supports for the energy benchmark.
In a case where the quote drops below $73.20, the $73.00 round figure might act as an intermediate halt before dragging the $70.00 psychological magnet and then to the late December 2021 low near $66.15.
Alternatively, the $80.00 threshold could restrict the WTI’s recovery moves ahead of the 21-DMA hurdle surrounding $80.70.
Following that, a downward-sloping trend line from early November, near $81.70, acts as an extra filter to the north.
Overall, WTI crude oil remains on the bear’s radar but the downside room appears limited.
WTI: Daily chart
Trend: Limited downside expected
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