WTI Price Analysis: Oil portrays corrective bounce above $67.00 but bears keep control
- WTI portrays corrective bounce from the lowest levels since December 2021.
- Oversold RSI favors recovery but convergence of 10-DMA, previous support line from late 2021 probe buyers.
- 19-month-old ascending support line lures sellers amid bearish MACD signals.
WTI crude oil picks up bids to consolidate recent losses around $67.15 during Monday’s Asian session. In doing so, the black gold bounces off the 15-month low marked the previous day amid oversold RSI conditions.
However, the energy benchmark remains well below the previous key support confluence comprising the 10-DMA and an upward-sloping support line from December 2021, now resistance near $71.20-30.
It should be noted, however, that the latest rebound could aim for $70.00.
That said, a horizontal area comprising multiple levels marked since early January, around $72.70, appears the key hurdle for the WTI bulls to cross to retake control.
Following that, the mid-month high of around $77.55 could lure the WTI crude oil buyers.
Alternatively, a fresh downside could aim for the latest bottom surrounding $65.45 before aiming for the December 2021 low of around $62.30.
It’s worth mentioning that an upward-sloping trend line from August 2021, around 62.30, also appears the key downside filter to watch for the Oil bears.
Should the quote remains bearish past $62.30, a slump towards the August 2021 bottom of $61.80, as well as to the $60.00 round figure, can’t be ruled out.
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.
