WTI Price Analysis: Bearish Doji probes Oil buyers around $78.50
- WTI struggles to extend four-day uptrend around weekly top.
- Gravestone Doji joins overbought RSI to probe energy bulls.
- Three-week-old horizontal support zone, 200-SMA challenge bears.
- Bulls could aim for $81.10 during further upside.
WTI crude oil seesaws around $78.50 as energy bulls take a breather after a four-day winning streak. That said, the black gold’s latest weakness, or inability to rise further, could be linked to a bearish candlestick formation on the four-hour chart, as well as the overbought RSI (14).
That said, the Gravestone Doji candlestick at the weekly top teases WTI sellers to revisit the $77.00-76.90 support zone comprising multiple lows marked since December 20. However, the 200-SMA level surrounding $76.75 could challenge the commodity’s further downside.
In a case where the quote remains bearish past $76.75, multiple hurdles around $75.00 could test the oil bears before highlighting an upward-sloping support line from December 09, close to $73.35 at the latest.
Alternatively, WTI crude oil prices need to cross the immediate top of $79.35 to defy the downside bias posed by the bearish candlestick.
However, a three-week-old horizontal region surrounding $80.95-81.10 could challenge the oil buyers afterward.
It’s worth noting, however, that the WTI crude oil’s run-up beyond $81.10 will need validation from the monthly high surrounding $81.55 to aim for the previous month’s peak of $83.30.
To sum up, WTI crude oil is likely to witness a pullback but the bears have a bumpy road ahead before retaking control.
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.
