WTI Price Analysis: Bears attack $90.00 inside three-week-old rising channel
- WTI pares the biggest daily gains in six months by retreating from a one-month high.
- Resistance-turned-support line from August restricts immediate declines, five-week-long ascending trend line adds to the downside filters.
- Oscillators suggest further weakness but bullish chart formation, key support line challenge bears.
WTI Crude Oil holds lower ground near $90.00, following a downside gap to begin the week’s trading. Even so, the black gold remains inside a short-term upward-sloping trend channel during the initial hours of trading on Monday.
It should be noted, however, that the retreat in RSI (14) from the overbought territory and the recently easing bullish MACD signals suggest the energy benchmark’s further weakness.
That said, the previous resistance line from August 30, around $88.60 by the press time, restricts the quote’s immediate downside.
Following that, the support line of the aforementioned bullish channel stretched from mid-October, around $86.80 at the latest, should lure the WTI bears.
It’s worth observing that an upward-sloping support line from September 28, close to $85.70, acts as an extra filter to the south before welcoming the oil sellers.
Alternatively, recovery moves may aim for the stated channel’s upper line, close to $92.00, but the buyers could wait for a clear upside break of the previous monthly peak of $92.63 to retake control.
In that case, a run-up towards the high marked in late August, around $97.30, might gain the market’s attention.
WTI: Four-hour chart
Trend: Limited downside 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.
