Sep 21, 2022 14:31
Futures for West Texas Intermediate (WTI) on the New York Mercantile Exchange (NYMEX) have destroyed Monday's stronger bounce. The price of black gold drew large bids below $82.00 and climbed, but the upswing was cut short and the asset continued its decline. Oil prices are hanging around $83, and it is anticipated that they will remain the same.
The asset has effectively established below the 61.8% Fibonacci retracement (placed from the low of December 2, 2021 at $62.34 to the high of March 12 at $126.51) at $87.00 on a daily scale. Typically, a break below the 61.8% Fibo retracement level signifies the culmination of the whole downward swing.
The decline of the 20-period and 50-period Exponential Moving Averages (EMAs) at $87.00 and $91.25 respectively adds to the downside filters.
In addition, the Relative Strength Index (RSI) (14) is close to changing into the negative zone of 20.00-40.00, which will accelerate the momentum to the downside.
A decline below the monthly low of $80.96 will push the asset towards the high of $77.20 on 29 December 2021, followed by the high of $73.17 on 9 December 2021.
In contrast, the asset will regain strength if it surpasses the $90.00 round-level resistance. This will cause oil prices to approach a 50% Fibonacci retracement at $94.32 and psychological barrier at $100.00.
Sep 21, 2022 14:35