WTI Price Analysis: Sellers need $76.40 breakdown to keep reins

WTI extends pullback from multi-month top, refreshes intraday low.
Three-month-old horizontal area restricts immediate downside.
5-DMA, receding bullish bias of MACD hint at further weakness.

Anil Panchal FXStreet

WTI remains on the back foot, keeping the previous day’s losses, while poking intraday low of $76.37, down 0.26% on a day during early Thursday.

The black gold jumped to the fresh high since November 2014 before taking a U-turn from $79.53 and mark the heaviest daily loss in seven weeks the previous day.

The latest weakness takes clues from the quote’s downside break of 5-DMA as well as the softer MACD line from the overbought limit.

However, tops marked since July, around $76.50-40 challenge the bears before directing them to a 12-day-old support line near $75.50.

Following that, a convergence of 20-DMA and an ascending trend line from August 23, around $73.55, will be a tough nut to crack for WTI sellers.

Meanwhile, recovery moves need to cross the 5-DMA hurdle, close to $77.00 before eying the latest peak surrounding $79.55 and the $80.00 psychological magnet.

Overall, WTI crude oil is long due for a pullback but has strong supports before allowing the bears to take the fort.

WTI: Daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	76.49
Today Daily Change	-0.23
Today Daily Change %	-0.30%
Today daily open	76.72

Trends
Daily SMA20	73.12
Daily SMA50	70.11
Daily SMA100	70.36
Daily SMA200	64.88

Levels
Previous Daily High	79.53
Previous Daily Low	76.6
Previous Weekly High	76.51
Previous Weekly Low	73
Previous Monthly High	76.51
Previous Monthly Low	67.02
Daily Fibonacci 38.2%	77.72
Daily Fibonacci 61.8%	78.41
Daily Pivot Point S1	75.7
Daily Pivot Point S2	74.69
Daily Pivot Point S3	72.77
Daily Pivot Point R1	78.63
Daily Pivot Point R2	80.55
Daily Pivot Point R3	81.56

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.

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