- WTI extends the previous day’s decline on profit taking.
- Spinning top near the YTD high builds up downside pressure.
- Momentum oscillator tilts in favor of bears, awaiting confirmation.
Crude oil gathers downside momentum with substantial losses in the Asian session. After touching YTD high at $74.10, prices fell sharply to close near $72.89.
At the time of writing, WTI is trading at $72.30, down 0.28% for the day.
WTI 4-hour chart
On the 4-hour chart, WTI has been consolidating in a rectangle formation in the range of $72.20 and $74.00 for the past week.
If WTI slips below the session’s low at $72.25, then it could retest the $71.65 horizontal support level followed by the low of June 21 at $70.69.
The Moving Average Convergence Divergence (MACD) indicator reads above the midline with a bearish crossover. Any downtick in the MACD would further intensify the selling pressure toward the $70.00 horizontal support level.
Alternatively, if prices move above the $72.50 key psychological mark, then it could crawl back to the $73.50 horizontal resistance level followed by the previous day’s high at $74.16.
WTI bulls would then likely march in the direction of the levels last seen in October 2018 at the high of $76.80.
WTI additional levels