WTI Price Analysis: Defends bounce off 61.8% Fibonacci retracement around $90.00
|- WTI grinds higher after bouncing off the key Fibonacci retracement support.
- Sluggish RSI, MACD challenge further upside momentum but 61.8% golden ratio probes bears.
- Convergence of 200-DMA, two-month-old resistance line and 50% Fibonacci retracement level restricts short-term upside.
WTI crude oil prices struggle to extend the latest rebound at around $90.00 during Tuesday’s initial Asian session.
The black gold began the week on a positive side while extending Friday’s recovery from the 61.8% Fibonacci retracement level of December 2021 to the March 2022 upside, near $86.90.
However, downbeat RSI and sluggish MACD seem to challenge the WTI crude oil’s further recovery, which in turn restricts the quote’s latest moves below $90.00.
It’s worth noting that the commodity’s further upside past the $90.00 immediate hurdle needs validation from the $94.30-50 resistance area comprising the 50-DMA, 50% Fibonacci retracement level and a downward sloping trend line from early July.
During the quote’s pullback, the 61.8% Fibonacci retracement level near $86.90 could restrict immediate downside ahead of the late January swing low around $81.70.
Should WTI price remain weak past $81.70, the $80.00 round figure and early December 2021 swing high around $73.70 should lure the oil bears.
WTI: Daily chart
Trend: Limited upside 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.