WTI Price Analysis: Upside momentum fades above $40.00 in Asia
- WTI oil benchmark stays inside a weekly rising wedge bearish pattern.
- 50% Fibonacci retracement, 200-HMA offers strong support.
- June month’s top holds the key to the further upside towards February low.
WTI extends weakness from $40.54 while flashing $40.20, down 0.30% on a day, during the late-Asian session on Friday. The black gold currently rests on the support line of the bearish chart formation amid bearish MACD signals.
As a result, sellers seek entries below $40.20 to target the late-June month’s low near $37.18. However, a confluence of 200-HMA and 50% Fibonacci retracement of June 23-25 fall, around $39.40, might question the bears.
Should the oil benchmark continue trading southward past-$37.18, June month’s bottom of $34.45 could lure the pessimists.
Alternatively, $40.60 and $40.80 can offer nearby resistances during the quote’s U-turn. Though, the mentioned bearish pattern’s resistance line, at $41.27 now, could trigger a pullback.
Assuming the buyers’ dominance past-$41.27, June month high near $41.65 and February month low of $43.95 should return to the charts.
WTI hourly 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.
