Technical Analysis – WTI oil futures battle with 61.8% Fibo
WTI futures retreat after hitting 2-month high
Violate 200-day SMA but 61.8% Fibo pauses decline
Momentum indicators weaken but remain positive
Should bearish pressures persist and the price dive below the 61.8% Fibo of 75.97, the November low of 72.40 could act as the first line of defence. Sliding beneath that floor, the price may descend towards the 78.6% Fibo of 70.80. A successful break below that zone could pave the way for the 66.95-68.00 support range defined by June lows and the recent six-month bottom.
On the flipside, if buyers re-emerge and propel oil above the 200-day SMA, immediate resistance could be found at the 50.0% Fibo of 79.61. Further upside attempts could then stall around the 38.2% Fibo of 83.25. Conquering this barricade, the bulls could attack the 23.6% Fibo of 87.75.
In brief, WTI oil futures experienced a downward spike following their rejection slightly below the 80.00 psychological mark, but the 61.8% Fibo has been acting as a strong floor. Hence, a clear close beneath the latter could accelerate the recent retreat.
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