WTI Price Analysis: Retreats from four-month-old resistance to sub-$89.00 region
- WTI crude oil eases from three-week high, snaps two-day uptrend.
- Firmer RSI and successful trading above 50-DMA favor buyers.
- 100-DMA adds to the upside filters, bears need validation from $85.30 to retake control.
WTI crude oil pares recent losses around $88.50 while posting the first intraday loss in three during Thursday’s Asian session.
The black gold rose to the highest level since October 12 during the previous day before reversing from a four-month-old descending resistance line. The pullback move, however, remains beyond the 50-DMA and keeps the buyers hopeful. Also challenging the bearish bias is the steadily rising RSI (14), not overbought.
That said, the quote’s latest pullback remains elusive unless breaking the 50-DMA support of $85.80. Also acting as the short-term key support is an upward-sloping trend line from September 27, near $85.30.
In a case where the energy benchmark drops below $85.30, $81.30 and an early September low of $80.95 can please the WTI bears before directing them to the $80.00 and September’s monthly bottom of $76.08.
Meanwhile, the aforementioned resistance line from early July, close to $89.50 at the latest, guards the quote’s immediate run-up ahead of the 100-DMA hurdle surrounding $91.45.
Following that, the tops marked during October and late August, near $92.65 and $97.30 in that order, could lure the WTI crude oil buyers.
WTI: 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.
