WTI Price Analysis: Bears are in town
- WTI prices are falling in Asia as the market picks up the bearish pace.
- NFP is around the corner so there is a focus on the US dollar.
WTI keeps sliding for a day of a lower settlement on Thursday, with West Texas Intermediate, WTI, falling over 0.6% by the close of play in North American trade.
WTI fell from a high of $65.96 to a low of $64.53. Meanwhile, WTI crude futures dropped 92 cents, or 1.4%, to $64.71.Oil had originally enjoyed US crude inventories falling more sharply than expected that data showed earlier on in the week.
In trade today, WTI is down -0.22% at the time of writing after falling from a high of 464.95 to a low of $64.65.
The black gold was reversing early gains and under pressure from rising COVID-19 infections in India and elsewhere.
Meanwhile, India posted record daily COVID-19 infections and deaths, which is a weight for oil markets considering the nation is the world's second-most populous nation and a huge consumer of oil.
This has been dashing hopes that its deadly second wave was about to peak.
On the other hand, easing restrictions in Europe along with the falling US crude inventories have supported prices.
WTI price analysis
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The price has returned to test the prior highs on the daily chart in a 50% mean reversion,
However, it would now be expected to head higher in the coming sessions if support holds.
An onward extension comes in at 66.73 as a -272% Fibonacci retracement of the current corrective range.
If that support structure fails, the downside will be in sight and the bears will look for the prior lows of the recent bullish impulse. These come in just below the 63 handle.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
