WTI Price Analysis: Drops towards $83.00 on breaking monthly support line
- WTI drops for the second consecutive day, refreshes intraday low.
- Bearish MACD signals, support break favor sellers to attack 50-SMA.
- Monthly horizontal support, 200-SMA adds to the downside filters.
WTI crude oil extends the previous day’s pullback from multi-day top towards breaking short-term key support, refreshing intraday low near $83.50 during Friday’s Asian session. In doing so, the black gold drops 1.42% intraday by the press time.
Given the commodity’s clear downside break of the monthly trend line, coupled with the bearish MACD signals, WTI prices are likely to remain pressured towards the 50-SMA level of $83.00.
It should be noted, however, that the quote’s sustained downside past $83.00 makes it vulnerable to test the $80.00.
Though, the monthly horizontal area around $77.50-25 and the 200-SMA level of $75.95 will challenge the oil bears afterward.
On the flip side, corrective pullback needs to stay beyond the previous support line, around $84.25 at the latest, to convince the commodity buyers.
Following that, the eight-year high flashed on Thursday, near $87.00 and an ascending resistance line from January 06, near $87.75, will test the energy bulls targeting the $90.00 psychological magnet.
WTI: Four-hour chart
Trend: Further weakness 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.
