WTI Price Analysis: Bears take a breather on the way to $69.80
- WTI consolidates recent losses after breaking short-term support.
- Descending RSI, not oversold, adds to the bearish bias targeting 200-HMA.
- Immediate descending trend line challenges buyer’s return ahead of $73.20.
WTI crude oil defends the $71.00 threshold during a quiet Asian session on Tuesday. Even so, the energy bears remain hopeful as the quote broke an upward sloping trend line from December 03 the previous day.
Adding to the bearish bias is the descending RSI line, not oversold, as well as a falling trend line from the last Thursday.
That said, a one-week-old horizontal support area around $70.20 may offer an intermediate halt to the oil sellers before directing them to the 200-HMA level of $69.80.
In a case where the black gold drops below $69.80, the 38.2% Fibonacci retracement (Fibo.) level of December 02-09 upside will precede an eight-day-long horizontal line, respectively around $69.00 and $67.20, to challenge the WTI’s further downside.
On the flip side, the previous support line and descending resistance line from December 12, around $72.20 and $72.80 in that order, restrict the short-term upside of the WTI crude oil prices.
Adding to the resistance is the monthly top near $73.20, a break of which will highlight the late November swing low near $74.65 for the bulls.
WTI: Hourly chart
Trend: Further weakness 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.
