WTI Price Analysis: Buyers can ignore recent retreat to $80.00
- WTI crude oil retreats from one-week high to snap three-day uptrend.
- Sustained trading beyond monthly resistance line, now support, joins 10-DMA breakout to favor bulls.
- 21-DMA, 50% Fibonacci retracement level adds to the upside filters.
WTI crude oil prints the first intraday loss of the week as bulls step back to $80.00 after renewing the weekly top during early Thursday.
In doing so, the black gold pares the previous day’s upside break of a downward-sloping resistance line from November 07, now support around $79.30.
Even if the WTI bears manage to conquer the previous resistance near $79.30, the oil sellers will find it difficult to keep the reins unless successfully breach the 10-DMA level surrounding $78.95.
Following that, a southward trajectory towards the horizontal area comprising the lows marked since late September, around $76.10, quickly followed by the $76.00 round figure, could test the commodity sellers before directing them to the yearly low marked in the last week near $73.65.
On the contrary, WTI recovery needs validation from the tops marked on November 18 and 22, around $82.30-40.
Even so, a convergence of the 21-DMA and a 50% Fibonacci retracement level of the black gold’s downturn marked in November, around $83.10-30, appears a tough nut to crack for the bulls before taking control.
It should be noted that the receding bearish bias of the MACD and steady RSI keep oil buyers hopeful.
WTI: Daily chart
Trend: Further upside 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.
