WTI Price Analysis: Breaks weekly support in search of further downside below $90.00
- WTI remains pressured after snapping five-day uptrend at monthly high.
- Downside break of weekly support line joins bearish MACD signals, RSI retreat to favor sellers.
- 200-SMA acts as the last defense of buyers before highlighting September’s low.
WTI crude oil prices remain depressed around $90.00 as bears take a breather following the first daily negative in six. However, the black gold’s downside break of a short-term key support favored bears during Tuesday’s Asian session.
That said, the energy benchmark’s latest downside aims for the 61.8% Fibonacci retracement of the late August-September downside, around 89.15.
Following that, the 50% Fibonacci retracement level and the 200-SMA, respectively near 86.65 and 85.75, could try to challenge the bears before giving them control.
It’s worth noting that the bearish MACD signals and the RSI’s retreat from the overbought territory keep the WTI bears hopeful.
On the flip side, recovery moves need to cross the support-turned-resistance line from September 30, around 90.70, to convince intraday buyers.
Even so, the monthly high near 92.65 and the 93.00 threshold may probe the WTI buyers before directing them towards the August month high near 97.30.
Overall, WTI crude oil is likely to witness a short-term pullback but the bearish move is far from here.
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.
