WTI Price Analysis: 100-SMA challenges further downside
- WTI bears take a breather after reversing from October 2018 tops.
- Bearish MACD, trend line break keep sellers hopeful.
- Bulls need to cross $74.00 to retake the controls.
WTI oil prices remain pressured, despite a recent bounce off the one-week low, down 0.12% around $73.20, amid Wednesday’s Asian session. The black gold refreshed the highest levels since October 2018 the previous day, before declining the most in three months.
The commodity’s slump broke an ascending support line from late May, also ticked below 100-SMA, but couldn’t stay low for longer. That said, the quote seems to hold the immediate SMA support of late.
That said, the energy benchmark struggles between 100-SMA and the previous support line, respectively around $73.00 and $73.25. Even so, bearish MACD and the sustained break of the stated support line back the bears to aim for a 200-SMA level of $70.55.
It should, however, be noted that the quote needs a clear downside break of the mid-June tops surrounding $72.20, not to forget the break of 100-SMA level of $73.00, to extend the fall towards the key SMA. Following that, the $70.00 threshold and June 17 lows near $69.55 will be in focus.
On the flip side, a clear break of $72.25 will trigger a corrective pullback targeting the two-week-old horizontal area near $74.00.
Though, any further upside will not hesitate to refresh the multi-month high of $76.40 but will be tested by an ascending resistance line from June 23, close to $76.70.
WTI: Four-hour chart
Trend: Pullback expected
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.
