- WTI dribbles inside a bearish chart pattern around six-week low.
- Steady RSI and sustained trading below 100-HMA favor bears.
- Eight-day-old resistance line adds to the upside filters.
WTI crude oil traders lick their wounds near $ 103.50, up 0.15% intraday, heading into Friday’s European session. In doing so, the black gold remains inside a two-day-old bearish pennant formation while taking rounds to the lowest levels in six weeks.
It’s worth noting that the quote’s failure to rise past 100-HMA and steady RSI, together with the aforementioned pennant, gives rise to hopes of witnessing the further downside.
However, a clear break of the $ 103.00 becomes necessary for the WTI bears to retake control.
Following that, the theory suggests a $ 20.00 slump in commodity prices. However, the recent low near $ 101.00 and the $ 100.00 psychological magnet may act as additional validation points for the commodity’s further downside.
Meanwhile, recovery moves should cross the pennant’s resistance line, at $ 105.20 by the press time, to recall the buyers.
Even so, the 100-HMA level of $ 106.40 and a downward sloping resistance line from June 14, close to $ 108.50 at the latest, could challenge the WTI crude oil’s further upside.
In a case where the black gold rises past $ 108.50, the $ 110.00 appears to be the last defense for the bears.
WTI: Hourly chart
Trend: Further weakness expected