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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