Tue, Aug 09, 2022 @ 14:23 GMT
HomeContributorsTechnical AnalysisWTI Oil Futures Falter But Still Supported

WTI Oil Futures Falter But Still Supported

WTI oil futures (August delivery) turned red after failing to close above the 20-day simple moving average (SMA) and the 50% Fibonacci retracement of the $130.50 – $92.19 downfall at $111.35/barrel on Wednesday.

The latest pullback could gain new legs as the RSI has slid back below its 50 neutral mark and the MACD remains muted below its signal and zero lines. If that turns out to be the case and the price retreats below the nearby 38.2% Fibonacci of $106.82 too, the door will open for the shorter-term support trendline at $103.70. A step beneath the latter may immediately halt around the 23.6% Fibonacci of $101.23. Otherwise, the sell-off may stretch towards the $96.90 floor.

Should the price sail northwards instead and above the longer-term ascending trendline, the bulls will again push for a close above the 50% Fibonacci of $111.35 and the 20-day SMA. If they prove successful this time, and the bar at $114.50, which was a crucial constraint to market actions this year, gives way, the rally may speed up to the 61.8% Fibonacci of $118.32 and then meet the June top of $120.87.

All in all, WTI oil futures are technically exposed to additional losses. A decisive close below $106.82 is expected to motivate fresh selling.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading