WTI Price Analysis: Keeps bounce off $103.70 support confluence
- WTI pares the biggest daily loss in a week around important support.
- Bearish MACD signals, downbeat RSI and failures to cross 21-day EMA favor sellers.
- Convergence of the 100-day EMA, two-month-old support line restricts further downside.
WTI licks its wounds around $104.80 as sellers take a breather after cheering the week’s biggest fall the previous day. In doing so, the black gold bounces of short-term key support confluence comprising the 100-day EMA and an upward sloping trend line from late May.
Given the bearish MACD signals and an absence of oversold RSI, not to forget the quote’s sustained trading below the 21-day EMA, bears are likely to keep the reins.
That said, a clear downside break of the $103.70 support confluence becomes necessary to witness the south-run targeting the monthly low near $101.70.
During the fall, the 61.8% Fibonacci retracement of late February to early March upside, around $102.30, may offer an intermediate halt.
Alternatively, an upside break of the 21-day EMA, at $109.55 by the press time, needs validation from the weekly high of $112.72 to recall the WTI buyers.
Following that, the commodity prices can aim for the monthly peak of $121.35 before challenging the yearly top surrounding $126.50.
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.
