WTI Price Analysis: Oil fades downside momentum near $79.00 as markets stabilize after risk aversion
- WTI crude oil seesaws at the lowest level in a fortnight, prods three-day losing streak but lacks downside momentum.
- Multiple downside supports, oversold RSI (14) line test Oil sellers.
- WTI recovery remains elusive below $81.20; further downside appears limited unless breaking $77.20.
- US Dollar’s pause after refreshing multi-day high allows Oil price to consolidate weekly losses.
WTI crude oil licks its wounds at the lowest level in two weeks, defensive around $78.90 heading into Thursday’s European session.
In doing so, the black gold prints the first daily gains in four while portraying a corrective bounce off a three-week-long horizontal support zone amid the oversold RSI (14) line.
With this, the energy benchmark braces for further recovery towards the previous weekly low of around $79.65–70. However, a convergence of the 100-SMA and a downward-sloping trend line from August 10, close to $81.20, appears a tough nut to crack for the Oil buyers to crack.
In a case whereas the WTI bulls manage to keep the reins past $77.20, the odds of witnessing a run-up towards the monthly peak surrounding $84.35 can’t be ruled out.
On the flip side, a clear break of a horizontal area comprising multiple levels marked since late July, around $78.20-55, restricts immediate downside of the WTI crude oil price.
Following that, the 200-SMA level of $78.00 and a horizontal line comprising tops marked during July 13 and 21, close to $77.20, will act as the last defense of the Oil buyers.
WTI crude oil: Four-hour chart
Trend: Limited recovery expected