WTI Price Analysis: Bears stretch 61.8% Fibo break towards $100.00
- WTI remains on the back foot around weekly low, pressured after declining the most in six weeks.
- An absence of extreme RSI conditions joins recent break of previous key supports to keep bears hopeful.
- Bulls need a clear break of ascending trend line from March 30 to retake control.
WTI crude oil prices take offers to refresh weekly low around $100.20, down 1.20% intraday, while extending the previous day’s fall during Tuesday’s Asian session.
The black gold dropped the most on Monday while breaking 50-DMA, an upward sloping trend line from late April, as well as the 61.8% Fibonacci retracement (Fibo.) level of February-March upside.
Given the RSI line’s normal behavior, by staying around 50 levels, the latest breakdowns favor WTI sellers as they target a monthly upward sloping support line, near $97.85 by the press time. However, the $100.00 psychological magnet may test the oil bears.
In a case where the commodity prices break the aforementioned support line, a two-month-old horizontal area surrounding $92.50-30 will be in the spotlight.
Alternatively, the 61.8% Fibo level of $102.25 guards any recovery moves of the black gold. Following that, 50-DMA and the support-turned-resistance from April 25, respectively around 104.20 and $104.95, will lure the buyers.
It’s worth noting, however, that the oil buyers won’t be convinced until the quote stays below a six-week-old ascending resistance line, near $110.80 at the latest.
WTI: Daily chart
Trend: Further weakness expected