WTI Price Analysis: 100-DMA guards the downside starting out a fresh week


  • WTI recovers a part of Friday’s sell-off, with eyes on oil reserves release.
  • The US oil is supported above the 100-DMA of $73.86 on the 1D chart.
  • RSI sees a fresh uptick but remains below the central line.

WTI (NYMEX futures) is making a recovery attempt on the $76 level after falling as low as $74.64 earlier in the Asian session on Monday.

With the rebound, the US oil reverses a small portion of Friday’s steep sell-off, led by the European covid lockdowns and a potential release of the oil reserve by major global economies, including the US, China and Japan.

From a short-term technical perspective, WTI has stalled its correction from multi-year peaks just above the 100-Daily Moving Average (DMA) at $73.86.

The rebound comes in tandem with the 14-day Relative Strength Index (RSI) also recovering from almost two-month lows.

Despite the renewed uptick in the RSI, the indicator continues to trade within the bearish territory, suggesting that any recovery is likely to remain short-lived.

A daily closing below the 100-DMA could open floors to a sharp tumble towards the ascending 200-DMA at $69.42.

Ahead of that level, the $70 round figure could offer some reprieve to WTI buyers.

 WTI: Daily chart

Alternatively, any recovery attempts could meet the initial supply at the $77 level, above which the upward-sloping 50-DMA at $78.36 would get tested.

Should the recovery momentum sustain then WTI bulls could look out for the next resistance at the bearish 21-DMA at $80.45.

WTI: Additional levels to watch

WTI

Overview
Today last price 76.15
Today Daily Change 0.66
Today Daily Change % 0.87
Today daily open 75.52
 
Trends
Daily SMA20 80.66
Daily SMA50 78.25
Daily SMA100 73.86
Daily SMA200 69.34
 
Levels
Previous Daily High 79.2
Previous Daily Low 75
Previous Weekly High 80.67
Previous Weekly Low 75
Previous Monthly High 84.98
Previous Monthly Low 74.06
Daily Fibonacci 38.2% 76.6
Daily Fibonacci 61.8% 77.59
Daily Pivot Point S1 73.95
Daily Pivot Point S2 72.38
Daily Pivot Point S3 69.75
Daily Pivot Point R1 78.14
Daily Pivot Point R2 80.77
Daily Pivot Point R3 82.34

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Forex MAJORS

Cryptocurrencies

Signatures