WTI Price Analysis: Bears keep the reins with $40.00 in sight
- WTI stays pressured after Friday’s downbeat performance, slips below $40.50.
- MACD turns most bearish in a week, the key SMAs pop-up on the sellers’ radars.
- Bulls will have to cross September high for confirmation.
WTI drops to $40.26 during Monday’s Asian session. In doing so, the energy benchmark extends Friday’s downside break of an ascending trend line from October 02.
In addition to a clear break below the short-term key support line, now resistance, MACD conditions also favor the oil sellers. The MACD histogram portrays the widest negative difference since October 04.
As a result, the black gold sellers are watching over 200-bar SMA level of $40.10 as immediate support ahead of the $40.00 threshold. Though, the 100-bar SMA near $39.90, is likely to challenge the bears afterward.
If at all the bears refrain from respecting the 100-bar SMA support, the September 29 low around $28.50 will gain market attention.
On the upside, the $41.00 and immediate resistance line close to $41.40/45 can probe the short-term buyers of the commodity. Though, any further upside will be challenged by a horizontal area including highs marked since September 18, around $41.70/75.
WTI four-hour chart
Trend: Bearish
Reprinted from FXStreet，the copyright all reserved by the original author.
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