On profit taking, WTI extends the previous day’s fall.
The downside pressure is built up by a spinning top near the YTD high.
The momentum oscillator is skewed to the bears, pending confirmation.
Crude oil is losing ground in the Asian session, with significant losses. Prices declined substantially after reaching a YTD high of $74.10, closing near $72.89.
WTI is currently selling at $72.30 per barrel, down 0.28 percent on the day.
WTI has been stabilizing in a rectangle shape on the 4-hour chart for the past week in the area of $72.20 and $74.00.
If WTI falls below the session’s low of $72.25, it may revisit the $71.65 horizontal support level before retesting the June 21 low of $70.69.
With a bearish crossover, the Moving Average Convergence Divergence (MACD) indicator reads above the midline. Any MACD downtick would increase the selling pressure toward the $70.00 horizontal support line.
If prices rise above the $72.50 psychological barrier, they may revert to the $73.50 horizontal resistance level, which is followed by the previous day’s high of $74.16.
Bulls in WTI would then most likely move in the direction of the $76.80 high recorded in October 2018.
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