WTI Price Analysis: 100-SMA, three-week-old previous resistance prod Oil sellers
- WTI crude oil consolidates the biggest daily gains in two weeks around $72.50.
- Nearly overbought RSI, failure to remain firmer past $73.30 lures Oil bears.
- 100-SMA, resistance-turned-support and bullish MACD signals challenge WTI bears.
- 200-SMA appears the key upside hurdle, Oil bears need validation from $64.30.
WTI crude oil renews intraday low near $72.50 as it pares the biggest daily jump in a fortnight as the highest levels in three weeks amid early Thursday morning in Europe.
In doing so, the black gold traces the RSI (14) line’s retreat as it drops back to the 100-SMA level surrounding $72.35 at the latest. However, bullish MACD signals and the quote’s stability beyond the previous resistance line stretched from April 28, now immediate support near $71.60, challenge the Oil bears.
Following that, a quick fall towards the two-week-old ascending support line, near $70.30, and then towards the $70.00 round figure can’t be ruled out.
In a case where the WTI crude oil remains bearish past $70.00, the odds of witnessing a slump toward the double bottoms marked around $64.40-30 can’t be ruled out.
On the flip side, WTI’s recovery moves need to cross the latest peak of around $73.30 to recall the Oil buyers.
Even so, the 50% Fibonacci retracement level of its April-May fall, near $73.85, can’t be ruled out.
Though, a convergence of the 200-SMA and 61.8% Fibonacci retracement level of around $76.20-30 appears a tough nut to crack for Oil buyers.
WTI: Four-hour chart
Trend: Further upside expected