- WTI struggles to keep the previous day’s bounce from $41.80.
- February low, an ascending trend line connecting June tops on the bulls’ radars.
- 200-bar SMA can test sellers before a six-week-old support line.
WTI stays sluggish near $42.20 during the pre-Tokyo open trading on Friday. The black gold snapped four-day winning streak the previous day before taking a U-turn from $41.80. Though, MACD seems to defy the bulls near the five-month top and hence odds of the pullback become brighter.
While looking at it, intraday sellers could aim for a 200-bar SMA level of $40.55 as immediate support ahead of $40.00 round-figures. However, an ascending trend line from June 25, currently around $39.55 could challenge the commodity’s further downside.
In a case where the quote slips past-$39.55, odds of its drop to late June bottom around $37.20 can’t be ruled out.
Alternatively, $42.80 and the recent high, also the highest since early-March, of $43.60 will entertain the bulls ahead of highlighting February 2020 low near $44.00.
WTI four-hour chart
Trend: Pullback expected
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