WTI Price Analysis: Pressured towards refreshing eight-month low near $78.00
- WTI remains pressured around the lowest level since January 2022, keeps Friday’s weakness.
- Six-week-old support line, 78.6% Fibonacci retracement can test bears amid oversold RSI.
- Buyers need validation from falling wedge to retake control.
WTI takes offers to refresh the intraday low near $78.10 during Monday’s Asian session. In doing so, the black gold approaches the eight-month low marked on Friday.
However, the oversold RSI (14) and the lower line of a six-week-old falling wedge could challenge the bears at around $77.70.
Following that, the 78.6% Fibonacci retracement level of the black gold’s up-moves from late December 2021 to March 2022, around $76.60, will challenge the bears.
If at all the energy benchmark remains bearish past $76.60, the early December 2021 peak near $73.20 will be in focus.
Alternatively, recovery moves are likely elusive until the quote stays below the convergence of the 21-DMA and the stated wedge’s upper line, around $83.80.
Should the WTI crude oil buyers dominate past $83.80, the odds of witnessing the theoretical run-up towards the late August swing high around $97.30 can’t be ruled out.
To sum up, WTI bears appear tired but the downside room is limited, which in turn keeps buyers hopeful.
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.
