WTI Price Analysis: Eyes further downside below $77.00
- WTI holds lower grounds near two-week bottom, prints six-day downtrend.
- Sustained trading below key DMAs, trend line join bearish MACD signal to favor sellers.
- 10-week-old horizontal support lures bears unless the Oil price remains below 100-DMA.
WTI crude oil remains depressed near $76.50 as it fades the late Friday’s bounce off 10-week low during early Monday in Asia. In doing so, the black gold remains below the convergence of the 21-DMA and the 50-DMA, as well as the downward-sloping resistance line from November and the 100-DMA.
Not only the sustained trading below the aforementioned key technical indicators but the bearish MACD signals also keep the WTI sellers hopeful.
That said, the previous day’s bottom surrounding $75.30 lures WTI bears at the latest, a break of which could quickly drag the Oil price towards a horizontal area comprising multiple levels marked since early December, near $73.00-72.70.
In a case where the black gold drops below $72.70, the late 2022 bottom surrounding $70.30 and the $70.00 psychological magnet will be in the spotlight.
Alternatively, recovery moves will initially have to cross the 50-DMA and 21-DMA convergence surrounding $78.10 to convince short-term WTI buyers.
Following that, the aforementioned multi-day-old resistance line near $79.00 and the 100-DMA hurdle surrounding $80.70 could challenge the WTI bulls.
Should the energy benchmark rises past $80.70, January’s high near $82.70 and the last December’s peak of around $83.30 could act as the last defense of the Oil bears.
WTI: Daily chart
Trend: Further downside 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.
