WTI Price Analysis: Extends pullback from 100-SMA inside weekly bullish channel

  • WTI takes offers to refresh intraday low, extends Friday’s pullback from one-week high.
  • Bearish MACD signals, pullback from 100-SMA keep sellers hopeful.
  • Six-week-old resistance line, the channel’s top challenges the buyers.

WTI crude oil prices drop for the second consecutive day, down 1.0% while refreshing daily lows around $90.50 heading into Monday’s European session.

In doing so, the black gold approaches the lower line of the weekly bullish channel, while also extending Thursday’s pullback from the 100-SMA. The downside bias also takes clues from bearish MACD signals.

That said, the energy benchmark needs to break the $90.30 support to welcome bears. Also challenging the sellers is the $90.00 threshold.

It should, however, be noted that the quote’s weakness past $90.00 makes the commodity vulnerable to revisiting the six-month low of $86.40.

On the contrary, recovery moves may initially need validation from the 100-SMA, at $93.20 by the press time.

Above all, a convergence of the monthly resistance line and the upper line of the stated channel, close to $95.70, will be a crucial hurdle for the WTI bulls to cross to retake control.

Overall, the commodity prices brace for the fresh leg towards the south.

WTI: Four-hour chart

Trend: Further weakness expected

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