WTI Price Analysis: Retreats from three-month high but $80.00 is the key support
- WTI pares intraday gains after refreshing multi-day high.
- Overbought RSI conditions favor pullback moves towards November’s peaks.
- 10-DMA, two-week-old support line appears a tough nut to crack for the bears.
- Immediate rising trend line, 2021 top challenge the oil bulls.
Having initially jumped to the highest levels since late October, WTI crude oil prices eased to $83.75 during Monday’s Asian session.
In doing so, the black gold reacts to the overbought RSI conditions while stepping back below an upward sloping trend line from January 06.
Considering the RSI conditions and the commodity’s failures to stay firmer around the multi-day top, the quote’s declines towards the late October 2021 tops surrounding $83.50 become imminent.
Following that, $82.40 and $81.00 can entertain the WTI crude oil sellers.
However, a convergence of the 10-DMA and a two-week-old support line, near $80.00, becomes crucial to watch, a break of which will direct WTI bears towards the 61.8% Fibonacci retracement (Fibo.) of October-December downside, near $76.30.
On the flip side, the immediate resistance line, around $84.60, restricts the quote’s short-term advances ahead of the year 2021 peak, marked in October around $85.00.
WTI: Daily chart
Trend: Further weakness expected