- WTI struggles to extend pullback from 200-HMA, a seven-day-old support line.
- Descending trend line from Wednesday restricts immediate upside.
- Bulls are getting tensed and may warrant a clear break of $44.00 for a stronger comeback.
WTI seesaws around $41.75 during the initial Asian session on Monday. The energy benchmark rose from $41.42 to $41.87 at the day’s start. However, the follow-on trading moves failed to keep the upside momentum and portray the black gold’s weakness below a three-day-old resistance line. Even so, sellers await a clear downside break of 200-HMA and an ascending trend line from July 30 for fresh entries.
Hence, the bears are waiting for the break of $41.30 support to aim for Tuesday’s low near $40.30 ahead of targeting the $40.00 threshold.
In a case where the quote remains weak past-$40.00, July 30 bottom surrounding $39.10 will be the key.
Meanwhile, an upside clearance of $42.00 will trigger fresh pullback towards $42.80 and August 05 top near $43.60.
However, February month low near $44.00 becomes the tough nut to crack for the bulls before eyeing any further upside past-$43.60.
WTI hourly chart
Trend: Further weakness expected