- WTI dribbles inside a bearish chart pattern around six-week low.
- Steady RSI and sustained trading below 100-HMA favor bears.
- Eight-day-old resistance line adds to the upside filters.
WTI crude oil traders lick their wounds near $103.50, up 0.15% intraday, heading into Friday’s European session. In doing so, the black gold remains inside a two-day-old bearish pennant formation while taking rounds to the lowest levels in six weeks.
It’s worth noting that the quote’s failure to rise past 100-HMA and steady RSI, together with the aforementioned pennant, gives rise to hopes of witnessing the further downside.
However, a clear break of the $103.00 becomes necessary for the WTI bears to retake control.
Following that, the theory suggests a $20.00 slump in commodity prices. However, the recent low near $101.00 and the $100.00 psychological magnet may act as additional validation points for the commodity’s further downside.
Meanwhile, recovery moves should cross the pennant’s resistance line, at $105.20 by the press time, to recall the buyers.
Even so, the 100-HMA level of $106.40 and a downward sloping resistance line from June 14, close to $108.50 at the latest, could challenge the WTI crude oil’s further upside.
In a case where the black gold rises past $108.50, the $110.00 appears to be the last defense for the bears.
WTI: Hourly chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD steadies near 1.0550, looks to post modest weekly gains
EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory.
GBP/USD struggles to hold above 1.2300
GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data.
Gold stays below $1,830 as US yields edge higher
Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.
Why Cardano could surprise over the weekend
ADA set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.
FXStreet Premium users exceed expectations
_XtraSmall.png)
Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!