WTI Price Analysis: Bears attack two-month-old support with eyes on $73.00
- WTI fades bounce off intraday low as sellers poke ascending support line from early December 2022.
- Downbeat MACD signals favor sellers but RSI conditions suggest limited room towards the south.
- Multiple EMAs, weekly resistance line highlight $79.30 as the key upside hurdle.
WTI crude oil holds lower ground near $77.00 as it retreats from its intraday high during early Thursday morning in Europe. In doing so, the black gold fades the late Monday’s corrective bounce off a three-week low.
The quote’s latest weakness takes clues from the bearish MACD signals and sustained trading below the key Exponential Moving Averages (EMAs).
However, an upward-sloping support line from early December 2022, close to $76.70 by the press time, challenges the WTI bears. On the same line could be the nearly oversold RSI (14).
It’s worth noting that a clear downside break of the aforementioned support line could quickly drag the quote toward two-month-old horizontal support near $73.00.
In a case where the Oil price remains bearish past $73.00, the late 2022 bottom surrounding $70.30 and the $70.00 psychological magnet will gain the market’s attention.
Meanwhile, the energy benchmark’s recovery moves remain elusive unless crossing the $79.30 resistance confluence, comprising the 100-EMA, 50-EMA and a one-week-old descending trend line.
Even if the WTI price crosses the $79.30 hurdle, the $80.00 round figure could act as a validation point for the rally targeting the previous monthly high near $82.70.
WTI: Four-hour chart
Trend: Limited downside expected