WTI Price Analysis: Oil bears approach $68.30 support within six-week-old triangle
- WTI takes offers to refresh intraday low, down for the third consecutive day in a row.
- Fears of higher Oil supply, back of demand join US Dollar rebound to please bears.
- Sustained trading below the key moving averages, mostly steady RSI suggest further downside of energy benchmark.
- Bulls remain cautious below $83.40; $64.30 can prod WTI bears.
WTI renews its intraday low around $69.50 as it drops for the third consecutive day heading into Monday’s European session. In doing so, the black gold justifies fears of oversupply and lack of energy demand amid the sluggish market conditions.
Also read: WTI bears attack $70.00 as Oil producers, major economics shake demand-supply matrix
That said, the steady RSI (14) line and the black gold’s inability to cross the 50-DMA, as well as the 200-DMA, keeps the energy benchmark on the bear’s radar.
Even so, a 1.5-month-old symmetrical triangle restricts immediate Oil moves between $73.00 and $68.30.
Should the quote breaks the triangle formation towards the south, the double bottoms around $64.30, appear a tough nut to crack for the Oil sellers to crack before retaking control.
On the flip side, a clear run-up beyond the stated triangle’s top line, currently around $73.00, could challenge the 50-DMA hurdle of $74.55.
Following that, the 200-DMA level surrounding $78.50 and the $80.00 round figure can challenge WTI bulls.
It’s worth noting, however, that a broad resistance area comprising multiple levels marked since early December 2022, between $83.40 and $82.60, could challenge the black gold’s further upside past $80.00.
WTI crude oil: Daily chart
Trend: Limited 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.
