WTI Price Analysis: Oil snaps two-day winning streak as sellers attack 200-SMA above $71.00
- WTI crude oil takes offers to renew intraday low during the first loss-making day in three.
- Oil price pulls back from fortnight-old resistance line amid nearly overbought RSI.
- Bullish MACD signals keep energy buyers hopeful above weekly support line, 1.5-month-old horizontal support.
WTI crude oil pares the previous weekly gains, the first in three, as it renews intraday low near $71.30 to snap a two-day uptrend amid early Monday.
In doing so, the black gold reverses from a two-week-old descending resistance line amid nearly overbought RSI (14). However, the bullish MACD signals and the 200-SMA, around $71.30 by the press time, challenge the Oil bears.
It should be noted, however, that a clear break of the 200-SMA won’t hesitate to prod the $70.00 psychological magnet while the 50% Fibonacci retracement of May 03-24 upside, near $69.50, may test the energy benchmark bears afterward.
In a case where the WTI crude oil remains bearish past $69.50, a one-week-old ascending support line and a horizontal area comprising multiple lows marked since early May, respectively near $69.30 and $67.20-67.00, will be in the spotlight.
On the contrary, Oil’s recovery needs validation from the aforementioned resistance line of around $72.00, a break of which can direct the energy bulls toward the multiple hurdles marked near $73.50.
However, the WTI recovery remains elusive unless the quote stays below the late May swing high of near $74.70.
WTI crude oil: Four-hour 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.
