Oil Price Forecast: WTI breaks short-term rising channel, slips further below $19
- NYMEX WTI Futures for June fails drops over 5.0% while defying a short-term bullish technical pattern.
- 61.8% Fibonacci retracement, 200-HMA on the sellers’ radars.
- Buyers look for fresh entries beyond Friday’s trend line resistance.
Having breached a short-term ascending trend channel from April 28, WTI futures for June drops over 5.0% to $18.72 amid the early Monday’s Asian session.
With the sustained break of a short-term bullish formation, the black gold currently declines towards 61.8% Fibonacci retracement of April 21 slump, around $16.45.
Though, the bears might have to avail a pause around 200-HMA level of $15.35 during the further downside.
Alternatively, a horizontal resistance line around $20.50 seems to limit the energy benchmark’s recovery moves above the channel’s support-turned-resistance line, currently around $19.90.
Should there be a clear break above $20.50, April 21 high near $22.60 will be on the buyers’ radars.
WTI hourly chart
Trend: Further downside likely
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
