WTI outlook: Bears pause above daily cloud

Slobodan Drvenica Windsor Brokers

WTI

WTI oil price ticked higher on Wednesday morning as bears take a breather after a massive losses in past two days (down around 16%).

Bears found solid support at $64.00 zone (Fibo 61.8% of $55.40/$77.88 rally / just above top of thick daily Ichimoku cloud) with oversold daily conditions adding to scenario of a partial profit-taking from recent sharp fall.

Recovery attempts were so far minimal and capped by broken 100DMA ($65.78) which now acts as initial resistance, still away from upper triggers at $67.25 (Fibo 23.6% of $77.88/$63.97), $68.55 (200DMA) and $69.28 (Fibo 38.2%), violation of which to generate stronger bullish signals.

Meanwhile, the downside is expected to remain at risk, as near-term picture heavily weighed by large bearish daily candles, daily bearish engulfing and weakened daily studies, as well as expectations from OPEC+ to further increase production.

Bears may hold in prolonged consolidation while supports at $64.00 zone hold, but loss of these supports would generate strong bearish signal and open way for continuation of fall from $77.88 (June 23 top).

Res: 65.78; 66.95; 67.25; 68.55.
Sup: 64.20; 64.00; 63.69; 62.50.

Interested in WTI technicals? Check out the key levels

1. R3 70.73
2. R2 69.13
3. R1 66.93
PP 65.33
1. S1 63.12
2. S2 61.53
3. S3 59.32

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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