WTI Price Analysis: $41.00 becomes a tough nut to crack for the bulls
- WTI buyers struggle to keep the previous day’s upside momentum near one-week high.
- One-month-old falling trend line restricts WTI crude oil’s immediate upside.
- 200-bar SMA, 61.8% Fibonacci retracement offers the key resistance.
- Multiple ascending trend line stands tall to question the bears’ entries.
WTI fades Monday’s upside momentum while easing to $40.68 during the pre-Tokyo open trading on Tuesday. The energy benchmark earlier rose to the highest in one week before taking a U-turn from a descending trend line from August 31.
Not only the immediate resistance line, currently around $40.85, 200-bar SMA and 61.8% Fibonacci retracement level of WTI’s August-September downside, around $41.00, also acts as the key upside barrier for the black gold.
As a result, odds of the commodity’s pullback to the $40.00 threshold, also comprising an upward sloping trend line from September 14, are brighter.
Though, any further weakness below the psychological benchmark will be probed by a short-term rising support line from September 21 that presently stays around $39.50.
It’s worth mentioning that the RSI strength may help WTI to attack the monthly top of $41.75 on the successful clearance above $41.00.
WTI four-hour chart
Trend: Sideways
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.
