WTI Price Analysis: Jostles with 50-DMA to convince Oil buyers

WTI grinds higher after crossing one-week-old resistance line.
Unimpressive oscillators, 50-DMA challenges Oil bulls ahead of the key 100-DMA hurdle.
Pullback remains elusive below $75.60 support confluence, $73.00-72.50 region appears a tough nut to crack for bears.

Anil Panchal FXStreet

WTI crude oil struggles to extend the previous day’s stellar run-up around the weekly top, making rounds to $77.70-60 during early Wednesday. In doing so, the black gold seesaws around the 50-DMA amid sluggish RSI (14) and MACD signals.

It’s worth noting, however, that Tuesday’s upside break of a one-week-long descending trend line keeps WTI bulls hopeful.

Hence, a clear upside break of the 50-DMA hurdle, currently around $77.80, appears necessary for the WTI bulls to keep the reins.

Even so, the 100-DMA and a two-month-old descending resistance line, respectively around $80.90 and $82.70, could challenge the Oil buyers before giving them control.

That said, the 61.8% Fibonacci retracement level of the commodity’s November-December 2023 downturn near $84.30, also known as the “Golden Ratio”, acts as the last defense of the Oil bears.

Meanwhile, the resistance-turned-support line joins the 23.6% Fibonacci retracement to highlight $75.60 as the key support confluence for WTI bears to watch for taking entries.

Following that, a horizontal area comprising multiple levels marked since early December 2022, near $73.00-72.50, will be crucial as a break of which can quickly drag the prices toward late 2022 low near $70.30.

Overall, Oil buyers need to wait for a clear sign but the bears are clearly off the table.

WTI: Daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	77.67
Today Daily Change	3.02
Today Daily Change %	4.05%
Today daily open	74.65

Trends
Daily SMA20	78.79
Daily SMA50	77.61
Daily SMA100	81.01
Daily SMA200	90.63

Levels
Previous Daily High	74.68
Previous Daily Low	72.5
Previous Weekly High	80.61
Previous Weekly Low	73.36
Previous Monthly High	82.68
Previous Monthly Low	72.64
Daily Fibonacci 38.2%	73.85
Daily Fibonacci 61.8%	73.34
Daily Pivot Point S1	73.21
Daily Pivot Point S2	71.77
Daily Pivot Point S3	71.03
Daily Pivot Point R1	75.39
Daily Pivot Point R2	76.13
Daily Pivot Point R3	77.57

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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