WTI Price Analysis: Seems vulnerable near one-month lows, below 200-day SMA


  • WTI witnessed some heavy selling for the second consecutive session on Thursday.
  • Oversold conditions on hourly charts helped ease the bearish pressure, for now.
  • The set-up supports prospects for additional weakness toward the $39.00 figure.

WTI crude oil prices added to the previous day's heavy losses and remained under some intense selling pressure for the second consecutive session on Thursday. The commodity dived to near one-month lows, albeit managed to find some support near the $40.45 region.

The comes on the back of the overnight breakthrough a multi-week-old trading range, which constituted the formation of a rectangle on short-term charts. A subsequent slide below the very important 200-day SMA might have already shifted the near-term bias in favour of bearish traders.

The negative outlook is further reinforced by the fact that technical indicators on the daily chart have just started drifting in the bearish territory. However, oscillators on hourly charts are already flashing oversold conditions, warranting some consolidation or a modest bounce.

This makes it prudent to wait for some strong follow-through selling before positioning for any further weakness. The commodity might then accelerate the slide towards the key $40.00 psychological mark en-route the $39.45-40 support before eventually dropping to the $39.00 mark.

On the flip side, any meaningful recovery attempt might now confront a stiff resistance and remain capped near the rectangle support breakpoint, around the $41.00 round-figure.

WTI daily chart

fxsoriginal

Technical levels to watch

WTI

Overview
Today last price 40.81
Today Daily Change -0.96
Today Daily Change % -2.30
Today daily open 41.77
 
Trends
Daily SMA20 42.66
Daily SMA50 41.47
Daily SMA100 35.86
Daily SMA200 42.05
 
Levels
Previous Daily High 43.37
Previous Daily Low 41.43
Previous Weekly High 43.86
Previous Weekly Low 42.3
Previous Monthly High 43.86
Previous Monthly Low 39.75
Daily Fibonacci 38.2% 42.17
Daily Fibonacci 61.8% 42.63
Daily Pivot Point S1 41.01
Daily Pivot Point S2 40.25
Daily Pivot Point S3 39.06
Daily Pivot Point R1 42.95
Daily Pivot Point R2 44.14
Daily Pivot Point R3 44.9

 

 

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