- WTI takes offers to refresh multi-day day low as sellers attack two-month-old trend line support.
- Pullback in RSI from overbought area, bearish MACD signals hints at further pullback.
WTI remains on the back foot around a two-week bottom close to $80.00 during early Thursday. In doing so, the black gold pokes the key support line from late August while declining for the second consecutive day.
Given the RSI pullback from the overbought area and recently bearish MACD signals giving support to the latest WTI weakness, the quote is likely to extend the losses.
However, a daily closing below the stated support line near $80.70 becomes necessary for the short-term oil bears to take entries. Also acting as a hurdle is the $80.00 psychological magnet.
Should the quote stay depressed past $80.00, odds of witnessing a WTI fall towards July’s top near $76.40 can’t be ruled out.
Alternatively, corrective pullback needs to cross the $82.70 support to recall the WTI bulls. However, an upward sloping trend line from early March, near $84.55, will be a tough nut to crack for them.
Overall, oil prices are likely to witness a pullback but the trend reversal isn’t on the cards.
WTI: Daily chart
Trend: Further weakness expected