WTI Price Analysis: Stays depressed above $109.00, eyes to retest monthly low
|- WTI fades bounce off monthly low during the second positive day.
- 13-day-old horizontal resistance guards immediate upside, 61.8% Fibonacci retracement level lures bears.
- Weekly descending trend line adds to the upside filters.
WTI crude oil pares daily gains around $109.30 as bulls fail to extend the previous day’s bounce off the monthly low heading into Tuesday’s European session.
In doing so, the black gold retreats from the fortnight-long horizontal resistance amid sluggish RSI (14).
That said, the pullback moves direct WTI sellers towards the 61.8% Fibonacci retracement level of May-June upside, around $106.40.
However, the quote’s weakness past $106.40 will be challenged by the May 19 swing low of $103.00 and the $100.00 psychological magnet before directing the black gold towards the previous monthly low near $97.20.
Alternatively, upside momentum needs to cross the immediate horizontal hurdle surrounding $110.35.
Following that, a convergence of the 200-SMA and 50% Fibonacci retracement level could challenge the WTI buyers at around $111.85.
In a case where the energy benchmark rises past $111.85, a one-week-old descending resistance line close to $113.00 appears the last defense for the bears.
Overall, crude oil prices are likely to witness further downside but the bears need confirmation from $106.40.
WTI: Four-hour chart
Trend: Further weakness expected
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