WTI Price Analysis: Drops from 10-month top to snap five-day uptrend

WTI bounces off intraday low, dropped earlier as US dollar extends Friday’s recovery moves.
Greenback benefits from virus woes, stimulus passage amid a light calendar day.
10-day SMA, five-week-old support line restricts immediate downside.

Anil Panchal FXStreet

WTI picks up the bids near $47.85, down 2.68% intraday, during early Monday. In doing so, the energy benchmark takes the U-turn from the highest levels since February, marked last Friday, amid US dollar gains, mainly backed by the risk-off mood and nearness to the American aid package.

Read: US Dollar Index Price Analysis: DXY bulls battle seven-week-old resistance line

Other than the fundamentals, overbought RSI conditions also favored the WTI sellers’ return. However, a confluence of 10-day SMA and an ascending trend line from mid-November, near $47.40/25, offers strong immediate support.

While the recent dip in RSI and fundamentals favor further weakness of oil prices, a sustained downside break of $47.25, also breaking the $47.00, becomes necessary for the sellers’ entry.

In a case, the WTI bears keep reins past-$47.00, November high near $46.30 and the monthly bottom near $44.00 will gain market attention.

On the flip side, the recent high near $49.45 and the $50.00 offer immediate resistance to the commodity. However, any further upside will not refrain from the February high of $54.68.

WTI daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	47.86
Today Daily Change	-1.32
Today Daily Change %	-2.68%
Today daily open	49.18

Trends
Daily SMA20	46.15
Daily SMA50	42.45
Daily SMA100	41.68
Daily SMA200	36.92

Levels
Previous Daily High	49.43
Previous Daily Low	48.28
Previous Weekly High	49.43
Previous Weekly Low	45.87
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	48.99
Daily Fibonacci 61.8%	48.72
Daily Pivot Point S1	48.5
Daily Pivot Point S2	47.81
Daily Pivot Point S3	47.35
Daily Pivot Point R1	49.65
Daily Pivot Point R2	50.11
Daily Pivot Point R3	50.8

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.

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