WTI Price Analysis: Reverses from 200-DMA to snap three-day winning streak below $77.00
- WTI takes offers to refresh intraday low during the first loss-making day in four.
- 200-DMA challenges Oil bulls amid overbought RSI conditions.
- 12-day-old rising support line holds the key to Oil seller’s entry.
- Descending trend line from November 2022 acts as an extra filter toward the north.
WTI crude oil remains on the back foot at the intraday low surrounding $76.50 as it prints the first daily loss in four, so far, heading into Friday’s European session. In doing so, the black gold reverses from the 200-DMA hurdle while justifying the overbought RSI (14) line.
With this, the energy benchmark is likely to witness further consolidation of the weekly gains while declining toward May’s monthly high of $74.70.
However, the 100-DMA and an upward-sloping support line from June 28, respectively near $73.60 and $73.10, will challenge the Oil bears before giving them control.
Should the WTI sellers keep the reins past $73.10, and also break the $73.00 round figure, the odds of witnessing a south run toward the $70.00 round figure and then to the previous monthly low of around $67.00 can’t be ruled out.
Alternatively, a daily closing beyond the 200-DMA level of $77.00 becomes necessary to convince the Oil buyers.
Even so, an eight-month-old falling resistance line, close to $77.70, acts as the last defense of the WTI bears and may prod further upside.
In a case where the energy benchmark rises past $77.70, the $80.00 psychological magnet and the yearly high marked in April near $83.40 will lure the Oil buyers.
WTI crude oil: Daily chart
Trend: Pullback 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.
