WTI Price Analysis: Extends pullback from 100-SMA inside weekly bullish channel
- WTI takes offers to refresh intraday low, extends Friday’s pullback from one-week high.
- Bearish MACD signals, pullback from 100-SMA keep sellers hopeful.
- Six-week-old resistance line, the channel’s top challenges the buyers.
WTI crude oil prices drop for the second consecutive day, down 1.0% while refreshing daily lows around $90.50 heading into Monday’s European session.
In doing so, the black gold approaches the lower line of the weekly bullish channel, while also extending Thursday’s pullback from the 100-SMA. The downside bias also takes clues from bearish MACD signals.
That said, the energy benchmark needs to break the $90.30 support to welcome bears. Also challenging the sellers is the $90.00 threshold.
It should, however, be noted that the quote’s weakness past $90.00 makes the commodity vulnerable to revisiting the six-month low of $86.40.
On the contrary, recovery moves may initially need validation from the 100-SMA, at $93.20 by the press time.
Above all, a convergence of the monthly resistance line and the upper line of the stated channel, close to $95.70, will be a crucial hurdle for the WTI bulls to cross to retake control.
Overall, the commodity prices brace for the fresh leg towards the south.
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.
