WTI Price Analysis: Drops towards monthly support around $74.00
|- WTI takes offers to refresh intraday low, prints two-day downtrend.
- Failures to cross one-week-old descending trend line, 50-SMA favor sellers.
- Bears need validation from $73.00 to keep the reins.
WTI crude oil remains depressed for the second consecutive day, down 0.80% intraday around $74.55 during early Wednesday in Europe.
The black gold’s latest weakness could be linked to its previous failures to cross the one-week-old resistance line, as well as the 50-bar Simple Moving Average (SMA). It’s worth noting that an absence of an oversold RSI (14) adds strength to the bearish bias.
However, an upward-sloping trend line support from early December, close to $74.00 at the latest, challenges the WTI sellers.
Even if the quote breaks the $74.00 support, a broad region comprising multiple levels marked since late November, between $73.60 and $73.00, appears a tough nut to crack for the crude oil bears.
In a case where the energy benchmark drops below $73.00 support, the odds of witnessing a slump toward the previous month’s low near $70.30, as well as an attack on the $70.00 psychological magnet, can’t be ruled out.
Alternatively, the weekly resistance line near $75.15 guards the quote’s immediate upside ahead of the 50-SMA level surrounding $76.15.
Following that, the $80.00 round figure and the monthly top of $81.55 could lure the WTI buyers.
Overall, WTI crude oil remains on the bear’s radar but the downside appears limited unless breaking the $73.00 level.
WTI: Four-hour chart
Trend: Limited downside 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.