WTI Price Analysis: Bears attack $77.50 with eyes on monthly bottom
- WTI holds lower ground at weekly low after the biggest daily fall in two months.
- Clear downside break of multi-month-old ascending trend line, bearish MACD signals favor sellers.
- Buyers remain off the table below 200-DMA, corrective bounce needs validation from $81.30.
WTI crude oil remains bearish around $77.50 during early Thursday, after falling the most since late September the previous day.
The black gold’s weakness could be linked to the downside break of an ascending trend line from December 2021, around $78.80 by the press time.
Also keeping the WTI sellers hopeful are the downbeat MACD signals and the confirmations of the “double top” bearish chart formation, by a clear concurrence of the $81.30 horizontal support.
Considering the aforementioned catalysts, the downward trajectory monthly low surrounding $75.30 is on the cards but the nearly oversold RSI (14) may challenge the oil bears afterward.
In a case where WTI bears fail to retreat from $75.30, the early December 2021 peak near $73.20 may act as an intermediate halt during the likely slump toward the previous yearly trough near $62.35.
Meanwhile, the multi-month-old previous support line near $78.80 will precede the $80.00 threshold to restrict the short-term upside of the energy benchmark.
Following that, the 11-week-old horizontal area, also forming part of the “Double top” bearish formation near $81.30, could challenge the commodity buyers before directing them to the 61.8% Fibonacci retracement level of December 2021 to March 2022 upside, close to $86.90.
WTI: Daily chart
Trend: Bearish
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.
