WTI Price Analysis: Remains poised to refresh three-month low
- WTI portrays a corrective pullback from May’s low.
- Bearish MACD, sustained breaks of the key supports keep sellers hopeful.
- 200-DMA can challenge bears below May’s bottom, bulls remain cautious below $66.90.
WTI snaps six-day downtrend to consolidate recent losses around $63.83, up 0.30% intraday, during Friday’s Asian session. In doing so, the energy benchmark bounces off the lowest levels in three months tested the previous day.
Even so, the black gold remains below 61.8% Fibonacci retracement (Fibo.) of March–July upside, not to forget the monthly horizontal line and a descending resistance line from July 30.
Given the MACD histogram flashing bearish signals, backed by the aforementioned breakdowns, WTI oil prices may remain directed towards the May 2020 low of $61.52.
However, the quote’s weakness below May’s bottom will be challenged by a convergence of the late April’s low and 200-DMA level around $60.60.
Meanwhile, 61.8% Fibo. guards the commodity’s immediate recovery, around $64.60, ahead of the stated horizontal line from July, close to the $65.00 threshold.
However, a convergence of 50% Fibo, descending trend line from July 30 and the previous support line from March 23, around $66.90, become crucial resistance to watch past $65.00.
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.
