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WTI Price Analysis: Bears likely to test 23.6% Fibonacci retracement near $67.85

  • 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

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

WTI

Overview
Today last price68.52
Today Daily Change-0.58
Today Daily Change %-0.84
Today daily open69.1
 
Trends
Daily SMA2066.14
Daily SMA5063.79
Daily SMA10061.47
Daily SMA20052.3
 
Levels
Previous Daily High69.85
Previous Daily Low68.79
Previous Weekly High69.61
Previous Weekly Low66.31
Previous Monthly High67.42
Previous Monthly Low61.53
Daily Fibonacci 38.2%69.19
Daily Fibonacci 61.8%69.44
Daily Pivot Point S168.64
Daily Pivot Point S268.19
Daily Pivot Point S367.58
Daily Pivot Point R169.7
Daily Pivot Point R270.3
Daily Pivot Point R370.76

Author

Rekha Chauhan

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

More from Rekha Chauhan
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