WTI crude oil futures have been trading slightly lower over the last few hours and created a 3-week low of 63.10. Having a look at the bigger picture the price is endorsing the scenario for further losses, while the short-term timeframe indicates an upward tendency.

In the 4-hour chart, the price dropped below the 23.6% Fibonacci retracement level at 63.84 of the last big upward movement with the low of 54.80 and high of 66.60. The RSI indicator is pointing to the upside above the 30 level. Additionally, the MACD oscillator is weakening in the negative territory and has fallen below the trigger line.

In case of a run below the 63.25 key level, then the focus could shift to the downside towards the 62.70 support barrier. Moreover, if the latter level is breached, this could increase the bearish pressure and extend the losses towards the next critical level of 62.20, which holds near the 38.2% Fibonacci mark.

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On the flip side, if the price fails to create a bearish movement, then it could hit the 20 and 40 simple moving averages in the near-term at 64.88. Rising above them could see prices testing 65.40.


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