WTI Price Analysis: Oil traders lick their wounds above $76.80 key support
- WTI retreats from intraday high, consolidates the biggest daily loss in two months.
- 200-HMA, sluggish RSI restricts immediate moves below the key resistances.
- One-week-old horizontal line, 100-HMA restricts immediate upside.
- Ascending trend line from late February challenges bears before giving them control.
WTI crude oil fades the early Asian session corrective bounce as it retreats to $77.65 amid Wednesday morning in Europe. That said, the black gold marked the biggest daily loss since early January the previous.
The energy benchmark’s losses on Tuesday dragged it below the 100-Hour Moving Average (HMA), as well as one-week-old horizontal support, now immediate resistance around $78.40. However, the oversold RSI (14) and the 200-HMA seem to have prodded the Oil bears afterward.
It should be noted that the commodity bears remain hopeful unless the quote trades below the 100-HMA level of $78.80.
In a case where the WTI buyers keep the reins past $78.80, the last Friday’s high near $79.90 and the $80.00 round figure could check the upside momentum before directing the run-up towards the monthly high surrounding $81.00.
On the flip side, an upward-sloping support line from February 22, close to $76.80, puts a floor under the Oil price.
Following that, a downturn towards the February 22 swing low of $73.85 and then to the previous monthly bottom surrounding $72.50 can’t be ruled out.
Overall, WTI crude oil remains on the bear’s radar despite the latest corrective move.
WTI: Hourly chart
Trend: Further downside expected