WTI Price Analysis: 100-SMA tests bears below $116.00

15 June 2022, 01:49

•WTI remains pressured around weekly low after breaking short-term key support lines.

•Downbeat RSI (14), not oversold, keeps oil bears hopeful.

•Clear downside break of $115.00 will confirm a ‘double top’ formation, which could facilitate further declines.

•Bulls remain cautious until witnessing a sustained run-up beyond 121.35.

WTI crude oil prices stay depressed at the weekly bottom, recently sidelined near $115.60-50, as sellers cheer a clear downside break of the short-term key support during Wednesday’s Asian session.

It’s worth noting that the black gold broke two support lines stretched from May but the 100-SMA challenges the bears. However, RSI (14) line joins the trend line breakdowns to keep the sellers hopeful.

In addition to the 100-SMA level near $115.30, Monday’s bottom surrounding $115.15 and the $115.00 threshold also challenge the commodity sellers.

Though, a sustained break of the $115.00 will confirm the double-top bearish chart pattern and direct the quote further south. In that case, the 200-SMA level of $110.86 and the monthly low near $110.00 could gain the market’s attention.

Following that, a downward trajectory towards May 19 swing low near $103.00 can’t be ruled out.

Alternatively, the monthly support-turned-resistance line near $115.85 appears the immediate hurdle to challenge the WTI rebound. After that, an upward sloping trend line from May 10, previous support around $116.55, will be crucial to watch for recovery moves.

Above all, the commodity buyers should wait for a clear upside break of the recent double tops before taking the driver’s seat, which in turn highlights $121.35 as the key level.