WTI Price Analysis: Bulls struggle near 23.6% Fibonacci retracement
- WTI fails to capitalize the previous session’s gain and prints losses on Friday.
- Bears dominate the trade since prices fell sharply from the YTD high of $76.40.
- Momentum oscillator remains in oversold zone with stretched buying conditions.
West Texas Crude Oil (WTI) edges lower on the last trading day of the week in the Asian trading session. The prices face a strong resistance near $72.80 as it struggles to break the level for the past two sessions.
At the time of writing, WTI is trading at $76.75, down 0.63% for the day.
WTI daily chart
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On the daily chart, after testing a fresh YTD high on July 6, crude oil prices fell sharply the same day as bulls were not able to preserve the momentum. WTI seems to be exhaustive after a long upside run from the $61.52 made on May 21.
If WTI breaks the intraday low, it could fall further toward the 38.2% Fibonacci retracement level, which extends from the low of $63.58 at $71.10.
The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone with bearish momentum. Any downtick in the MACD could accelerate the selling pressure.
That said, the WTI bears could meet the next downside target at $70.28, a low made a day earlier, followed by the June 17 low of $69.55.
Alternatively, if prices move higher, it could retrace back to the $73.50 horizontal resistance level.
Next, the bulls attempt to test the July 7 high at $74.31, followed by the high of July 2 at $75.06.
WTI additional levels
Author
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.
