WTI Price Analysis: Stays depressed above $109.00, eyes to retest monthly low

FXStreet · 21 Jun 2022 311 Views
  • WTI fades bounce off monthly low during the second positive day.
  • 13-day-old horizontal resistance guards immediate upside, 61.8% Fibonacci retracement level lures bears.
  • Weekly descending trend line adds to the upside filters.

WTI crude oil pares daily gains around $109.30 as bulls fail to extend the previous day’s bounce off the monthly low heading into Tuesday’s European session.

In doing so, the black gold retreats from the fortnight-long horizontal resistance amid sluggish RSI (14).

That said, the pullback moves direct WTI sellers towards the 61.8% Fibonacci retracement level of May-June upside, around $106.40.

However, the quote’s weakness past $106.40 will be challenged by the May 19 swing low of $103.00 and the $100.00 psychological magnet before directing the black gold towards the previous monthly low near $97.20.

Alternatively, upside momentum needs to cross the immediate horizontal hurdle surrounding $110.35.

Following that, a convergence of the 200-SMA and 50% Fibonacci retracement level could challenge the WTI buyers at around $111.85.

In a case where the energy benchmark rises past $111.85, a one-week-old descending resistance line close to $113.00 appears the last defense for the bears.

Overall, crude oil prices are likely to witness further downside but the bears need confirmation from $106.40.

WTI: Four-hour chart

Trend: Further weakness expected

Additional important levels

Today last price 109.2
Today Daily Change 0.39
Today Daily Change % 0.36%
Today daily open 108.81
Daily SMA20 114.98
Daily SMA50 108.74
Daily SMA100 103.84
Daily SMA200 90.52
Previous Daily High 109.13
Previous Daily Low 106.61
Previous Weekly High 121.02
Previous Weekly Low 106.2
Previous Monthly High 118.66
Previous Monthly Low 97.21
Daily Fibonacci 38.2% 108.17
Daily Fibonacci 61.8% 107.57
Daily Pivot Point S1 107.24
Daily Pivot Point S2 105.67
Daily Pivot Point S3 104.73
Daily Pivot Point R1 109.76
Daily Pivot Point R2 110.7
Daily Pivot Point R3 112.27

Affected Trading Instrument

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