Search ForexCrunch
  • WTI buyers struggle to keep the previous day’s upside momentum near one-week high.
  • One-month-old falling trend line restricts WTI crude oil’s immediate upside.
  • 200-bar SMA, 61.8% Fibonacci retracement offers the key resistance.
  • Multiple ascending trend line stands tall to question the bears’ entries.

WTI fades Monday’s upside momentum while easing to $40.68 during the pre-Tokyo open trading on Tuesday. The energy benchmark earlier rose to the highest in one week before taking a U-turn from a descending trend line from August 31.

Not only the immediate resistance line, currently around $40.85, 200-bar SMA and 61.8% Fibonacci retracement level of WTI’s August-September downside, around $41.00, also acts as the key upside barrier for the black gold.

As a result, odds of the commodity’s pullback to the $40.00 threshold, also comprising an upward sloping trend line from September 14, are brighter.

Though, any further weakness below the psychological benchmark will be probed by a short-term rising support line from September 21 that presently stays around $39.50.

It’s worth mentioning that the RSI strength may help WTI to attack the monthly top of $41.75 on the successful clearance above $41.00.

WTI four-hour chart

Trend: Sideways