WTI Price Analysis: 100-SMA tests bears below $116.00
- WTI remains pressured around weekly low after breaking short-term key support lines.
- Downbeat RSI (14), not oversold, keeps oil bears hopeful.
- Clear downside break of $115.00 will confirm a ‘double top’ formation, which could facilitate further declines.
- Bulls remain cautious until witnessing a sustained run-up beyond 121.35.
WTI crude oil prices stay depressed at the weekly bottom, recently sidelined near $115.60-50, as sellers cheer a clear downside break of the short-term key support during Wednesday’s Asian session.
It’s worth noting that the black gold broke two support lines stretched from May but the 100-SMA challenges the bears. However, RSI (14) line joins the trend line breakdowns to keep the sellers hopeful.
In addition to the 100-SMA level near $115.30, Monday’s bottom surrounding $115.15 and the $115.00 threshold also challenge the commodity sellers.
Though, a sustained break of the $115.00 will confirm the double-top bearish chart pattern and direct the quote further south. In that case, the 200-SMA level of $110.86 and the monthly low near $110.00 could gain the market’s attention.
Following that, a downward trajectory towards May 19 swing low near $103.00 can’t be ruled out.
Alternatively, the monthly support-turned-resistance line near $115.85 appears the immediate hurdle to challenge the WTI rebound. After that, an upward sloping trend line from May 10, previous support around $116.55, will be crucial to watch for recovery moves.
Above all, the commodity buyers should wait for a clear upside break of the recent double tops before taking the driver’s seat, which in turn highlights $121.35 as the key level.
WTI: Four-hour chart
Trend: Further weakness 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.
