After correcting from October 2018 highs, WTI bears take a breather.
Sellers are optimistic due to a bearish MACD and a trend line break.
To reclaim control, the Bulls must cross $74.00.
Despite a recent rally from a one-week low, WTI oil prices remain under pressure, down 0.12 percent at $73.20 in the Asian session on Wednesday. The previous day, the black gold rose to its greatest level since October 2018, before plummeting to its lowest level in three months.
The commodity’s decline broke a rising support line from late May, and it also fell below the 100-day moving average, but it couldn’t remain there for long. Nonetheless, the quote appears to have received recent SMA support.
The energy benchmark, on the other hand, is stuck between the 100-SMA and the prior support line, which are at $73.00 and $73.25, respectively. Nonetheless, bearish MACD and a persistent break of the indicated support line support the bears’ goal of $70.55 on the 200-SMA.
To prolong the decline towards the critical SMA, however, the price needs a clear downside break of the mid-June high around $72.20, not to mention a breach of the 100-SMA level of $73.00. The $70.00 level and the June 17 lows near $69.55 will be the target after that.
A clear break of $72.25 on the other hand, will spark a corrective decline to the two-week-old horizontal level near $70.00.
Any further upward will re-establish the multi-month high of $76.40, but an ascending resistance line from June 23, close to $76.70, will be tested.
Pullback is projected as a trend./n
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