Sellers need validation from $101.00

  • WTI remains on the back foot around six-week low.
  • Upward sloping trend line from mid-March challenges further downside.
  • 100-DMA, previous support line late 2021 guard recovery moves.

WTI crude oil prices keep the previous day’s downside break of the 100-DMA, despite bouncing off the three-month-old support line. That said, the black gold drops for the second consecutive day, down 1.0% around $102.90, amid early European morning on Thursday.

The energy benchmark is likely to decline further on the quote’s sustained break of the key DMA, as well as an upward sloping trend line from December 2021, not to forget the bearish MACD signals.

However, a clear downside break of the three-month-old support line, near $101.00 by the press time, appears necessary for the bears.

Following that, the $100.00 psychological magnet and lows marked during April and March, respectively around $92.65 and $92.35, will be important to watch.

On the flip side, the 100-DMA and the aforementioned support-turned-resistance line from 2021, close to $104.40 and $106.80, will challenge WTI’s short-term recovery.

In a case where the oil buyers manage to cross the $106.80, an upward trajectory towards late March’s high near $115.90 can’t be ruled out. Though, tops marked during mid-May around $113.20 and the $110.00 round figure may probe the WTI bulls during the run-up.

WTI: Daily chart

Trend: Limited downside expected

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