WTI picks up bids to snap three-day downtrend at monthly low.
Bearish MACD signals, previous support line challenge buyers.
Upside appears doubtful below 100-DMA, descending trend line from August also challenges the Oil buyers.
Seven-week-old horizontal support limits immediate downside ahead of 2023 bottom.
WTI crude oil licks its wounds near the one-month low, picking up bids to $73.70 during early Monday morning in Europe. In doing so, the black gold bounces off seven-week-old horizontal support to print the first daily gains in four.
However, the bearish MACD signals join the previous support line from early December 2022 to challenge the WTI recovery. Adding strength to the bearish bias could be the metal’s sustained weakness below the 100-DMA.
Hence, the quote’s latest rebound remains doubtful unless it stays below the support-turned-resistance line, close to $75.40 at the latest. Following that, a run-up toward $78.50 can’t be ruled out.
Even so, the 100-DMA and a descending trend line from late August 2022, respectively near $81.00 and $85.00, could challenge the energy bulls before giving them control.
On the contrary, pullback moves may retest the horizontal area comprising multiple levels marked since mid-December, near $73.40.
In a case where the black gold remains bearish past $73.40, its decline to the year 2023 bottom of $70.27 and then to the $70.00 psychological magnet can’t be ruled out.
Overall, WTI remains on the bear’s radar despite the latest corrective pullback.
WTI: Daily chart
Trend: Further downside expected