WTI Price Analysis: Skids below 50-EMA first time in 2022, $90.00 eyed

WTI has settled below 50-EMA for the first time in 2022.
Bulls have lost momentum as the RSI (14) has dropped below the bullish range of 60.00-80.00.
A mean reversion towards the trendline will bring offers to the counter.

Sagar Dua FXStreet

West Texas Intermediate (WTI), futures on NYMEX, have been vulnerable in the past few trading sessions. The black gold has witnessed a steep fall after recording a multi-year high at $126.51. For the first time in 2022, the asset has closed below the 50-period Exponential Moving Average (EMA), trading at $98.36.

On the daily scale, the asset is hovering around 50% Fibonacci retracement (placed from 2 December 2021 low at 62.34 to March 8 high at $126.51) at $94.55. It is worth noting that the asset has violated the trendline placed from 20 December 2021 low at $66.10. The oil prices have comfortably established below the 20-EMA, which is trading near $102.00.

The Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range from the bullish range of 60.00-80.00, which signals a consolidation ahead.

Should the WTI prices encounter a mean reversion to the trendline placed from 20 December 2021, the psychological figure of $100.00, bears will drag the asset towards the 50% Fibo retracement at $94.55, followed by 61.8% Fibo retracement at $86.91.

On the flip side, bulls may regain strength if the asset oversteps Tuesday’s high at $104.60, which will send the asset towards the round level resistance at $110.00. Surpassing the latter will drive the oil prices towards the March 24 high at $115.87.

WTI daily chart

WTI US OIL

Overview
Today last price	96.39
Today Daily Change	-4.02
Today Daily Change %	-4.00
Today daily open	100.41

Trends
Daily SMA20	104.14
Daily SMA50	98.31
Daily SMA100	86.95
Daily SMA200	80.36

Levels
Previous Daily High	104.6
Previous Daily Low	99.09
Previous Weekly High	111.79
Previous Weekly Low	96.94
Previous Monthly High	126.51
Previous Monthly Low	92.37
Daily Fibonacci 38.2%	101.2
Daily Fibonacci 61.8%	102.5
Daily Pivot Point S1	98.13
Daily Pivot Point S2	95.85
Daily Pivot Point S3	92.62
Daily Pivot Point R1	103.65
Daily Pivot Point R2	106.88
Daily Pivot Point R3	109.16

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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