- WTI wavers in a potential rectangle pattern on the daily chart.
- Daily RSI trades flat while within the bearish region.
- 100-DMA at 40.46 is the level to the beat for the bulls.
WTI (futures on NYMEX) is fading its recovery attempt in the European session this Thursday, as the risk-off sentiment dominates amid surging coronavirus cases in the Old continent and diminishing prospects of a US fiscal stimulus deal.
The higher-yielding oil is trying hard to hold onto the 40 level, having hit a daily high of 40.46 and a daily low of 39.78.
From a near-term technical perspective, the WTI barrel lacks a clear direction while ranging within an almost two-month-long horizontal channel (rectangle), as observed on the daily chart.
However, the path of least resistance appears to the downside amid a stack of healthy resistance levels and bearish hourly Relative Strength Index (RSI).
The bulls continue to face rejection at the 100-daily moving average (DMA) at 40.46. Acceptance above which the 50-DMA barrier could be challenged at 40.68.
A daily closing above the latter is required for the upside momentum to gather steam.
Alternatively, a fresh selling wave could knock-off the rates directly towards the downward-sloping 200-DMA at 38.22 should the daily low fail to hold.
WTI daily chart
WTI additional levels
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