WTI Price Analysis: Double top on daily chart, 100-DMA offers immediate support

WTI sees bearish reversal after double top formed on daily sticks.
Daily RSI points south while off the bearish region.
100-DMA at 40.03 to challenge bears’ commitment.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) extends its run of losses into a second straight day on Monday, in the face of a bearish reversal, which ensued after the price formed a double top formation on the daily chart.

The US oil faced rejection around 41.70 on September 18 and October 9, carving out a double top pattern. On its way south, the WTI barrel breached the 50-daily moving average (DMA) at 40.88 and now looks to test the next critical support of the 100-DMA at 40.03.

Acceptance under the 100-DMA could call for a test of the upward-sloping 21-DMA at 39.83. The next downside target is aligned at 39.09, which is the 200-DMA support.

On the flip side, the bulls need to recapture the 50-DMA support-turned-resistance to challenge the horizontal trendline (orange) barrier at 41.70.

The 14-day Relative Strength Index (RSI) points south, still holds above the midline, suggesting that the bearish bias could be losing momentum in the near-term.

WTI daily chart

WTI additional levels

WTI

Overview
Today last price	40.25
Today Daily Change	-0.53
Today Daily Change %	-1.30
Today daily open	40.78

Trends
Daily SMA20	39.81
Daily SMA50	40.9
Daily SMA100	39.97
Daily SMA200	39.37

Levels
Previous Daily High	41.68
Previous Daily Low	40.63
Previous Weekly High	41.68
Previous Weekly Low	37.13
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	41.03
Daily Fibonacci 61.8%	41.28
Daily Pivot Point S1	40.38
Daily Pivot Point S2	39.98
Daily Pivot Point S3	39.33
Daily Pivot Point R1	41.43
Daily Pivot Point R2	42.09
Daily Pivot Point R3	42.49

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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