WTI technical analysis: Plummets to over 1-week lows and rebounds, back near $55.00 mark

WTI extends this week’s retracement slide from near six-week tops.
Finds decent support near 23.6% Fibo. level, around $54.00 mark.

Haresh Menghani FXStreet

Having climbed to near six-week tops earlier this week, WTI started retreating from a resistance marked by 50% Fibonacci level of the 66.57-50.51 downfall. Despite the fact that OPEC agreed to cut its output, Oil prices witnessed some follow-through selling on Thursday and added to the previous session's heavy losses.

The intraday rejection slide from the very important 200-day SMA momentarily dragged the black gold below the $54.00/barrel mark for the first time in over a week. The mentioned handle marks 23.6% Fibo. level support and should now act as a key pivotal point for the commodity's next leg of a directional move.

Meanwhile, technical indicators on the daily charts have been losing positive momentum but are yet to gather bearish traction. Hence, it will be prudent to wait for a sustained break below the mentioned support before positioning for a further near-term slide back towards challenging the $53.00/barrel mark.

The downward trajectory could further get extended towards $52.50 horizontal support, which if broken will expose August swing lows - around mid-$50.00s - with some intermediate support near the $52.00 and $51.00 round figure marks.

WTI daily chart

WTI

Overview
Today last price	54.81
Today Daily Change	-1.11
Today Daily Change %	-1.98
Today daily open	55.92

Trends
Daily SMA20	55.59
Daily SMA50	56.16
Daily SMA100	57.33
Daily SMA200	56.43

Levels
Previous Daily High	58.21
Previous Daily Low	55.55
Previous Weekly High	57.63
Previous Weekly Low	52.77
Previous Monthly High	58.02
Previous Monthly Low	50.51
Daily Fibonacci 38.2%	56.57
Daily Fibonacci 61.8%	57.19
Daily Pivot Point S1	54.91
Daily Pivot Point S2	53.9
Daily Pivot Point S3	52.25
Daily Pivot Point R1	57.57
Daily Pivot Point R2	59.22
Daily Pivot Point R3	60.23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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