WTI crude oil futures are continuing the bearish movement following the strong pullback from the 60.80 resistance level during Monday’s session. Prices have been touching the 61.8% Fibonacci retracement level at 59.30 of the up-leg from 54.80 to 66.60 over the last hours, finding strong support obstacle. The bearish picture in the short-term is supported by the RSI indicator.
In the 4-hour chart, the aforementioned indicator is moving slightly lower in the negative territory near the 30 level and is approaching the oversold zone. In addition, the 20 and 40 simple moving averages are moving lower, suggesting further downside pressure.
Should prices extend their losses, immediate support could come at 58.50, a level that it tested several times in the past. In case of a fall below that barrier, the oil could hit the 7-month low of 58.00.
On the flip side, if prices jump above the 61.8% Fibonacci mark, the 50.0% Fibonacci retracement at 60.71 could act as a barrier before being able to re-challenge the 60.80 resistance barrier.
