• 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