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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.

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

fxsoriginal

WTI additional levels

WTI

Overview
Today last price40.25
Today Daily Change-0.53
Today Daily Change %-1.30
Today daily open40.78
 
Trends
Daily SMA2039.81
Daily SMA5040.9
Daily SMA10039.97
Daily SMA20039.37
 
Levels
Previous Daily High41.68
Previous Daily Low40.63
Previous Weekly High41.68
Previous Weekly Low37.13
Previous Monthly High43.56
Previous Monthly Low36.43
Daily Fibonacci 38.2%41.03
Daily Fibonacci 61.8%41.28
Daily Pivot Point S140.38
Daily Pivot Point S239.98
Daily Pivot Point S339.33
Daily Pivot Point R141.43
Daily Pivot Point R242.09
Daily Pivot Point R342.49

Author

Dhwani Mehta

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.

More from Dhwani Mehta
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