WTI Price Analysis: Slides Towards $78.30 Following a Break of the weekly Support Level

EnclaveFX Ltd
Jan 19, 2023
  • WTI crude oil refreshes weekly low as it breaks short-term key support.
  • Convergence of 50-SMA, 61.8% Fibonacci retracement restricts immediate downside.
  • Two-week-old ascending support line, 76.85 support confluence to test the bears.
  • Upside momentum remains elusive below $81.00 round figure.

During early Thursday in Europe, WTI takes offers to renew its weekly bottom around $78.50. The black gold bears cheer the breakdown of a one-week-old ascending trend line support, now resistance, amid bearish MACD signals and downbeat RSI readings.

Although, a convergence of the 50-SMA and the 61.8% Fibonacci retracement level of the quote's weakness in early December, near $78.30, appears to be a difficult obstacle for the short-term bears.

An upward-sloping support line from January 05, near $77.50, could test the oil bears if the energy benchmark remains below $78.30.

Also acting as the key downside filter is the $76.85-80 support confluence that encompasses the 200-SMA and the 50% Fibonacci retracement level of the aforementioned move in December.

It should be observed that the RSI is declining towards the oversold territory and hence the quote’s downside past $76.80 appears difficult.

Meanwhile, recovery moves need to cross the support-turned-resistance line, close to $80.30, to recall the WTI bulls.

In spite of this, the upside momentum may be further limited by a horizontal area consisting of the levels marked during late December and early January, around $81.00-$81.00.


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