- Crude oil incurs significant losses on Tuesday.
- Bulls gave up gains near the $70 mark.
- Overbought momentum oscillator warns of aggressive bets
Crude oil prices edge lower on Tuesday in the initial European trading hours. WTI peaked at $ 69.84 on Monday in the New York session but failed to sustain there and pared all the gains.
At the time of writing, WTI trades at $68.47, down 0.91% for the day.
WTI daily chart
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On the daily chart, WTI came under pressure after touching the YTD high at $69.84 in the previous day’s trading session. The prices extended the decline to trade with negative bias near the $68.50 mark losing nearly 1% of the trade.
The formation of the spinning top candlestick formation on June 7 indicates the reversal of the prevailing trend. A red candle following the next day confirmed the bearish formation. This technical pattern could seek the first target near the 23.6% Fibonacci retracement level, which extends from the lows of $61.65 at $67.50.
The Moving Average Convergence Divergence (MACD) indicator trades in overbought territory with receding bullish momentum. WTI bears would likely reclaim the low of June 1 at $66.77 followed by the 38.2% Fibonacci retracement at $66.47.
Alternatively, if prices make a sustained move above the $69.00 psychological mark, then WTI bulls could have a chance to travel back to yesterday’s high at $69.84.
Market participants would then possibly be looking at the levels last seen in 2018. The Bulls would keep on their radar May’s 2018 high at $72.85 followed by the June high in the vicinity of the $73.70 area.
WTI Additional Levels
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