WTI Price Analysis: Bounces off $84.50 key support
- WTI pares the biggest daily loss in seven weeks, prints mild gains of late.
- Convergence of 50% Fibonacci retracement level, monthly support line restricts immediate downside.
- Bearish MACD signals and sustained trading below 200-SMA favor sellers.
- Buyers need validation from $88.10 to retake control.
WTI crude oil remains pressured around $84.70 while consolidating the previous day’s losses, the biggest in nearly two months, heading into Tuesday’s European session.
In doing so, the black gold pokes the $84.50 support confluence comprising the one-month-old ascending trend line and the 50% Fibonacci retracement level of the commodity’s September-November moves.
That said, the quote’s sustained trading below the 200-SMA and bearish MACD signals keep WTI bears hopeful of breaking the $84.50 support.
Following that, a slump toward the 61.8% Fibonacci retracement level of $82.50 appears imminent. However, October 18 swing low near $81.30 and the $80.00 psychological magnet could challenge the oil sellers afterward.
Meanwhile, recovery moves need to cross the 200-SMA hurdle of $86.65 to convince short-term buyers.
Even so, a downward-sloping resistance line from November 07, close to $88.10, holds the key to oil buyer’s entry.
If the commodity buyers stay dominant past $88.10, the $90.00 round figure and the monthly high near $93.00 should flash on their radars.
Overall, the energy benchmark’s latest inaction fails to push back the sellers targeting the late October’s low.
WTI: Four-hour chart
Trend: Further 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.
