Categories: Markets

Bullish bias remains intact despite pullback from two-month highs

Bullish bias remains intact despite pullback from two-month highs
  • WTI consolidates the highest daily gains in five weeks around the November highs.
  • An 11-week trend line break keeps buyers on the table.

WTI crude prices are down from a multi-day high, falling 0.25% daily to $ 80.70 in the European session on Wednesday. With this action, black gold takes its biggest daily jump since the beginning of December.

However, retracement moves remain elusive as the price maintains the previous day’s upside breakout of a descending resistance line from Oct 25, now turned into support around $ 78.60.

Even if the price falls below $ 78.60, the 100 SMA level of $ 75.25 and the 23.6% Fibonacci retracement from November 2020 to October 2021 near $ 72.80 will challenge the WTI bears before directing them to the 10-month support line near $ 66.25.

Meanwhile, the 2021 year high around $ 85.00 is likely on the radar for the WTI bulls. A breakout of this zone will propel a move towards the $ 90.00 psychological magnet.

In a case where WTI buyers remain dominant beyond $ 90.00, the lows marked during January 2014 around $ 91.30 may be the next levels to be tested.

WTI: Gráfico diary

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