WTI Price Analysis: 10-DMA, resistance-turned-support line challenge Oil’s retreat
- WTI pares the first intraday gains in three amid downbeat RSI (14).
- Receding bearish bias of MACD probes Oil sellers around the key supports.
- Buyers need validation from 11-week-old horizontal resistance to retake control.
WTI crude oil trims intraday gains around $69.40 during Monday’s Asian session, despite snapping the two-day losing streak. In doing so, the black gold seems to trace the downbeat RSI (14) line amid a sluggish start to the week.
That said, the RSI (14) line struggles to extend the previous week’s rebound from the oversold territory, which in turn challenges the latest recovery moves. However, the easing bearish bias of the MACD signals and a looming bull cross on the stated indicator seems to keep the Oil buyers hopeful.
Adding strength to the bullish expectations could be the energy benchmark’s sustained trading beyond the 10-DMA and previous resistance line from March 07.
With this, the WTI bears remain off the table unless witnessing a clear downside break of the resistance-turned-support line, close to $68.20 by the press time. It should be noted that the 10-DMA restricts the commodity’s immediate downside, near the $69.00 round figure.
Above all, a downward-sloping support line from late September 2022, close to $64.00 by the press time, is the key challenge for the Oil bears to tackle.
Meanwhile, an area comprising multiple levels marked since early January, around $72.50-60, restricts short-term WTI rebound.
Following that, late February’s low of $73.85 can act as an extra check for the Oil buyers before directing them to the monthly high surrounding $81.00.
WTI: Daily chart
Trend: Recovery expected