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WTI steadies above $72 as bulls test the 23.6% fib level
WTI reclaimed the $72.00 mark but remains below its 200-day EMA near $77.18, leaving near term rallies vulnerable to being capped by weak demand signals.
WTI crude edged higher in Friday trading after pausing a pullback from the area of a three week high, with the front month contract reclaiming the $72.00 level during the Asian session. FXStreet noted the move is on track for weekly gains for the first time in the previous five weeks.
The latest rebound comes off the lowest level since February, but technical levels still frame the outlook. The recovery has stalled around the 23.6% Fibonacci retracement of the May to July decline, while WTI remains below the 200 day exponential moving average, which keeps a bearish near term tone.
Momentum indicators are mixed. FXStreet said the MACD has turned positive and moved above its signal line, but the RSI around 41 points to weak demand, suggesting any advance could be capped while WTI trades under the 23.6% fib and the 200-day EMA.
Upside resistance is cited at $75.81 near the 23.6% fib, then around $77.18 at the 200-day EMA, followed by higher barriers near $81.50 and $86.11. On the downside, the key structural support is the recent cycle low near $66.60, where a break would point to deeper bearish extension.
Latest closeWTI crude $71.84 ▼2.3%