WTI technical analysis: Buyers lurk around 200-bar SMA ahead of OPEC meeting
|- WTI takes the bid towards the 61.8% Fibonacci retracement.
- Bearish MACD highlights the weakness in momentum.
With its yet another bounce off 200-bar simple moving average (SMA), WTI flashes near $56.30 mark during Thursday’s Asian session.
Oil traders are particulary looking for signs of whether the major producers will keep the output cut accord, as mostly expected, or will hint the brake. Saudi Arabia, Russia and other major oil producers from the Organization of the Petroleum Exporting Countries Plus (OPEC+) group will meet in Abu Dhabi for a joint ministerial monitoring committee (JMMC) today.
The quote now aims to confront 61.8% Fibonacci retracement of July-August declines, at $57.00. However, a four-week-old rising trend-line around $58.75 could question further upside.
Contrast to the latest pullback, 12-bar moving average convergence and divergence (MACD) indicator shows a bearish signal and indicates the pair’s break below $55.45 key SMA level.
As a result, 38.2% Fibonacci retracement level of $54.55 could be considered as immediate support ahead of watching over the rising trend-line since August 07, at $53.50.
During the pair’s decline below $53.50, August 08 low surrounding $51.80 will gain sellers’ attention.
WTI 4-Hour chart
Trend: pullback expected
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