WTI Price Analysis: Prints four-day downtrend, $85.30 appears the last defense for bulls
|- WTI remains pressured around the lowest levels since late January.
- Clear U-turn from 200-DMA, downside break of 61.8% Fibonacci retracement level favor bears.
- Monthly support line challenges further downside as RSI approaches oversold territory.
WTI crude oil prices fade the corrective pullback from a nearly seven-month low, marked the previous day, as the bears keep reins for the third consecutive day. That said, the quote recently dropped to $86.25 during Wednesday’s Asian session.
The black gold’s latest weakness could be linked to its reversal from the $94.55 resistance confluence including the 200-DMA and 50% Fibonacci retracement (Fibo.) of December 2021 to March 2022 upside. Also keeping the commodity bears hopeful is the latest downside break of the 61.8% Fibo.
However, nearly oversold RSI (14) joins the monthly support line, at $85.30 by the press time, to challenge the WTI bears.
Also acting as a downside filter is the yearly low near $81.70, a break of which could make the quote vulnerable to a slump towards the early December 2021 high near $73.20.
Alternatively, recovery moves need to cross the 61.8% Fibonacci retracement level of $86.80 to convince WTI buyers.
Even so, the convergence of the 200-DMA and the 50% Fibo. near $94.55, appears a tough nut to crack for the bulls.
If at all the quote rises past $94.55, the odds of its run-up to the monthly high surrounding $101.00 can’t be ruled out.
WTI: Daily chart
Trend: Limited downside expected
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