- WTI continues to decline as inflation weighs on appetite for riskier assets.
- WTI is affected by prospects for a release of the US SPR.
- US oil is still looking at the breakout of the symmetrical triangle on the daily chart.
WTI (NYMEX futures) is hitting multi-day lows and flirting with the $ 79.00 level, as lingering inflation concerns continue to undermine investor sentiment for higher-yielding assets like oil.
US oil also continues to be affected by increased requests for the United States to free up oil supplies from its Strategic Petroleum Reserves (SPR) to ease pressure from the tightening oil market.
At the time of writing, WTI is shedding over 1% on the day, trading at $ 78.87, little affected by comments from the UAE and Oman Energy Ministers, as investors await the virtual meeting between the Presidents of the United States and China for a new take on market sentiment.
From a short-term technical perspective, the WTI continues to challenge the bullish commitment at the trend line support on the daily chart at $ 79.27.
The price briefly fell below the latter level on Friday, but managed to rebound at the weekly close. Today, it is being tested again.
If WTI closes below this level on Monday, then it will confirm a bearish breakout of a two-month-old symmetrical triangle pattern.
A further decline will begin thereafter, opening the doors to the upward sloping 200-day moving average at $ 68.82.
Before hitting the 200 SMA, the WTI bulls will be looking to find some support at the 50 SMA at $ 77.50.
The next support at the 100-day SMA at $ 73.62 will appear following a firm break below the 50 SMA.
The 14-day RSI is pointing lower below the 50 level, allowing for a further decline.
WTI gráfico diary
On the other hand, any recovery attempt could find initial resistance at the round level of $ 80, above which the horizontal 21-day SMA at $ 81.65 would be tested.
The downtrend line resistance at $ 83.39 will act as a tough nut to crack for the WTI bulls if recovery momentum picks up pace.
Acceptance above the latter level could lead to a breakout of the triangle, which could reinforce bullish interest.
WTI additional levels
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