WTI remains pressured around weekly low
WTI refreshes intraday low, near to the weekly bottom of $69.33, while taking offers near $69.45 during Wednesday in Europe. In doing so, the black gold portrays a three-day pullback from a downward sloping trend line from early November to drop back below the 200-DMA level. Also supporting the quote is the Momentum line that dribbles inside the negative territory.
That said, seven-month-old horizontal support near $67.10 is likely nearby support to watch during the WTI crude oil’s further declines. However, an upward sloping support line from March, near $65.00, will challenge the oil sellers afterward.
Meanwhile, a daily closing beyond the 200-DMA level of $70.20 will need validation from the aforementioned resistance line near $72.00 to convince energy buyers to take entries. In a case where WTI bulls cross the $72.00 hurdle, the monthly high near $73.20 will act as an upside filter before directing oil prices towards late July’s swing high near $73.90. Trend: Further weakness expected
Meanwhile, a daily closing beyond the 200-DMA level of $70.20 will need validation from the aforementioned resistance line near $72.00 to convince energy buyers to take entries. In a case where WTI bulls cross the $72.00 hurdle, the monthly high near $73.20 will act as an upside filter before directing oil prices towards late July’s swing high near $73.90. Trend: Further weakness expected