WTI technical analysis: Bears to confront multiple rest-points, oversold RSI

  • The energy benchmark struggles around monthly lows.
  • Multiple supports and oversold RSI can trigger a pullback

Despite declining beneath 61.8% Fibonacci retracement level, WTI is taking the support of an ascending trend-line stretched since December 2018 as it trades near $51.20 while heading into Europe open on Thursday.

Not only 61.8% Fibonacci retracement of December – April upside, at $51.62, a three-week-old descending resistance-line at $53.20 and current month high near $54.80 also act as near-term key resistances.

In a case where prices rise beyond $54.80, $57.30 and 200-day simple moving average (SMA) near $59.25 could flash on bulls’ radar.

Meanwhile, pair’s slip beneath $51.00 support-line needs to get validation from horizontal-line since mid-May at $50.50 and the $50.00 psychological magnet in order to decline further towards November 2018 bottom at $49.40 and a late-December top close to $47.00.

Other than the aforementioned supports, 14-day relative strength index (RSI) also moves in the oversold region and can challenge the bears.

WTI daily chart

Trend: Pullback expected

    1. R3 55.06
    2. R2 54.16
    3. R1 52.73
  1. PP 51.83
    1. S1 50.4
    2. S2 49.5
    3. S3 48.07


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

When is the BOJ rate decision and how could it affect USD/JPY?

USD/JPY struggles to keep the recent run-up past-107.00 ahead of the BOJ on Wednesday. The pair earlier benefited from hopes of virus vaccine and upbeat earnings but fears of the highest alert in Tokyo questions the bulls.

Read more

AUD/USD off five-week highs, battles 0.70 amid coronavirus vaccine hopes

AUD/USD is off the five-week highs to battle 0.7000. The pair benefits from the risk-on market mood amid coronavirus vaccine hopes. The bulls remain undeterred by the latest US-China tensions. 


EUR/USD hits four-month high of 1.1423

EUR/USD prints a four-month high of 1.1423 in Asia. The pair witnessed a bullish breakout above 1.1349 on Tuesday. The pair closed well above 1.1349 on Tuesday, invalidating the bearish lower high setup created on the daily chart on June 23.


Gold: Daily chart shows temporary uptrend exhaustion

Gold's daily chart shows a bearish divergence of the MACD, a sign of uptrend exhaustion. A break below the 10-day SMA could prove costly. The metal looks vulnerable to price pullback.

Gold News

Chart of the Day: DXY

The DXY is in a "bear flag" pattern currently and the target is well below the 94.00 level on a breakdown. However, there is a downtrend line (blue) and if this is broken it will negate the bear flag and turn ...

Read more