- WTI recovers part of Friday’s decline, with the focus on releasing oil reserves.
- US oil supports above the 100-day SMA at $ 73.86.
- The RSI sees a new rally, but remains below the center line.
WTI (NYMEX futures) is making a recovery attempt at the $ 76.00 level after falling as low as $ 74.64 earlier in the Asian session on Monday.
With the rebound, US oil reverses a small part of Friday’s sharp decline, led by new restrictions due to COVID in Europe and a possible release of the oil reserve by major global economies, including the United States, China and Japan.
From a short-term technical perspective, the WTI has halted its correction from multi-year highs just above the 100-day moving average at $ 73.86.
The bounce comes alongside the 14-day RSI also recovering from nearly two-month lows.
Despite the renewed rally in the RSI, the indicator remains within bearish territory, suggesting that any recovery is likely to remain short-lived.
A daily close below the 100-day SMA could open the doors for a sharp decline towards the 200 SMA at $ 69.42.
Before that level, the round $ 70 level could offer some relief to WTI buyers.
WTI gráfico diary
On the other hand, any recovery attempt could find initial resistance at the $ 77 level, above which, the 50-day SMA at $ 78.36 could be tested.
If the recovery momentum continues, the WTI bulls could target the next resistance at the bearishly sloping 21 SMA at $ 80.45.
WTI additional levels
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