WTI fails to profit from the previous session’s gains, as it loses ground on Friday.
Since prices fell substantially from their YTD high of $76.40, bears have dominated the market.
With stretched purchasing conditions, the momentum oscillator continues in the oversold zone.
In the Asian trading session, West Texas Crude Oil (WTI) edged lower on the last trading day of the week. Prices have been struggling to break through a significant resistance near $72.80 for the past two sessions.
WTI was trading at $76.75 at the time of writing, down 0.63 percent on the day.
On the daily chart, crude oil prices fell dramatically the same day after testing a new YTD high on July 6, as bulls failed to maintain the pace. After a protracted rise from the May 21 high of $61.52, WTI appears to have reached its limit.
If WTI breaks the intraday low, it might fall much deeper to the 38.2% Fibonacci retracement level, which runs from $63.58 to $71.10.
With bearish momentum, the Moving Average Convergence Divergence (MACD) indicator is trading in the overbought zone. Any MACD downtick could exacerbate the selling pressure.
However, the next negative target for WTI bears is $70.28, a day earlier’s low, followed by the June 17 low of $69.55.
If prices continue to rise, they may retrace back to the $73.50 horizontal resistance level.
The bulls will then aim to test the high of July 7 at $74.31, as well as the high of July 2 at $75.06./n
