WTI Price Analysis: Multi-month-old support line, 200-SMA prod Oil bears below $68.00
- WTI licks its wounds after falling to the lowest levels since December 2021.
- 200-SMA, ascending trend line from May 2021 joins downbeat RSI to challenge Oil sellers.
- WTI rebound remains elusive unless crossing 100-SMA, December 2022 low guards immediate recovery.
WTI crude oil portrays a corrective bounce to around $68.00 during early Thursday in Asia, following its decline to the lowest levels since December 2021. In doing so, the black gold takes a U-turn from an upward-sloping support line from May 2021, as well as the 200-bar SMA on the weekly chart.
Given the impending bear cross on the MACD and downbeat RSI (14) line, the odds of witnessing further rebound in the Oil price can’t be ruled out.
In that case, the December 2022 low near $70.30 gains major attention ahead of the lows marked in February and January of 2023, respectively near $72.50 and $72.65.
It’s worth noting, however, that the $80.00 round figure, a descending trend line from September 2022, close to $82.00, and the 100-SMA level of around $84.50 could challenge the Oil buyers past $72.65.
Should the energy benchmark manages to remain firmer past $84.50, the yearly high of around $84.65 can act as the last defense of the Oil sellers.
On the flip side, the 200-week SMA joins the 50% Fibonacci retracement of the commodity’s run-up from April 2020 to March 2022 to highlight the $67.00-66.75 region as the short-term key support.
Following that, the aforementioned support line from May 2021, close to $64.00 at the latest, will be in the spotlight.
Overall, WTI bears seem to run out of steam but the recovery remains elusive.
WTI crude oil: Weekly chart
Trend: Corrective bounce expected