WTI Price Analysis: Mildly offered below $77.00 on Wednesday’s Gravestone Doji
- WTI pulls back from six-week high, pressured around intraday low at the latest.
- Bearish candlestick, sluggish RSI hints at buyer’s exhaustion below multi-day-old resistance line.
- 50-DMA, 100-DMA restricts immediate downside ahead of monthly support line.
WTI crude oil remains on the back foot near the intraday low of $76.56, down 0.20% on a day during early Thursday.
The oil benchmark jumped to a fresh high since November 25 the previous day before reversing gain from $78.30 to retest the opening levels at Wednesday’s end. In doing so, the black gold printed a Gravestone Doji bearish candlestick on the daily chart.
Given the sluggish RSI conditions backing the bearish candlestick below a 10-week-old resistance line, around $78.95, WTI oil prices are likely to decline further.
In doing so, the 50-DMA and the 100-DMA can lure short-term traders, respectively around $75.00 and $74.65.
However, early December’s peak near $73.15 and a one-month-old support line, close to $70.20, will challenge WTI bears afterward.
Alternatively, an upside clearance of the stated resistance line near $78.95 will need validation from the $79.00 round figure before directing the oil prices towards $83.60 and then to November’s high surrounding $84.00.
During the rise, the $80.00 psychological manget will act as an extra filter to the north.
WTI: Daily 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.
