Crude Oil Analysis: WTI set for more downside below 61.8% Fibonacci retracement
- WTI prints some gains in the Asian session.
- The risk to the downside remains on four-hour chart.
- Bearish momentum oscillators tilt in favor of bears.
Oil prices remain off the lows and manage to stay above $64.90 in the Asian session. WTI faces stiff resistance near $66.50 as of Wednesday, and prices came under selling pressure after making a daily high of 66.75.
At the time of writing, WTI is trading at $64.92, up 0.32% on the day.
WTI four hourly chart
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On the four-hour chart, WTI has been nursing the previous day’s losses while making an effort to reclaim the $65 psychological mark. Prices are hovering around the 50% Fibonacci retracement level placed near $64.80 with the possibility of falling toward $64.50, which is the 61.8% Fibonacci retracement level.
The Moving Average Convergence Divergence (MACD) indicator is above the midline, after completing a bearish crossover. This displays that bears are gaining momentum, and could potentially drag prices toward $64 horizontal support, followed by weekly lows of $62.88 (May 3).
If prices begin moving higher, the first hurdle emerges near the 38.2% Fibonacci retracement level near $65.30, and then at $65.80. This Coincides with the 23.6% Fibonacci retracement. Bulls will keep their eyes on Wednesdays high at $66.70.
WTI additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
