WTI Price Analysis: Sellers eye $40.40/35 zone on bearish candlestick play
- WTI fades upside momentum, eases from $41.51 off-late.
- Friday’s Doji directs bears towards 21 and 50-day EMA confluence.
- Bulls remain cautious unless refreshing the monthly top.
Despite stepping back from intraday high of $41.51 to currently around $41.22, WTI prints 0.16% intraday gain ahead of Monday’s European session. The energy benchmark portrayed a bearish candlestick formation on Friday, which in turn can recall the near-term key support area unless the quote crosses $41.75.
In addition to the confluence of 21 and 50-day EMA joint near $40.40/35, the $40.00 round-figures and $38.60 can also lure the bears during WTI’s fresh downside.
Though, any more weakness past-$38.60 will make the black gold vulnerable enough to revisit the monthly bottom surrounding $36.40.
Alternatively, an upside clearance of Friday’s top near $41.75 can direct the bulls towards the month-start low near $42.90.
Should the WTI bulls manage to keep the reins beyond $42.90, the monthly peak near $43.55 and August month’s high close to $43.86 can probe the oil traders before offering them the $44.00 threshold.
WTI 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.
