WTI Price Analysis: Struggles to defend the bounce off 50-DMA above $79.00
- WTI grinds higher after posting the biggest daily gains in two weeks.
- Bearish MACD signals, steady RSI (14) probes rebound from 50-DMA.
- 100-DMA, fortnight-old horizontal hurdle also challenge Oil buyers.
- Ascending support line from December 2022 adds to the downside filters.
WTI crude oil buyers appear unconvinced from the previous day’s recovery moves as the quote seesaws near $79.20 amid early hours of the key Wednesday. In doing so, the black gold fades the bounce off the 50-DMA while taking a breather after rising the most in a fortnight.
Although the 50-DMA puts a floor under the Oil price around $77.80, the bearish MACD signals and the steady RSI (14), fail to appreciate the quote’s rebound. The reason could be linked to the commodity’s sustained trading below the key hurdles.
Among them, the $80.00 round figure gains the immediate attention ahead of the 100-DMA level surrounding $81.30.
Following that, a horizontal area comprising multiple tops marked since January 18, near $82.70, appears the last defense of the black gold bears.
On the contrary, a daily closing below the 50-DMA level near $77.80 could quickly direct the WTI bears towards challenging the key support line from early December, close to $76.50 by the press time.
Should the energy benchmark remains bearish past $76.50, the odds of its slump to the January 2023 low near $72.60 can’t be ruled out.
WTI: Daily chart
Trend: Further downside expected