WTI licks its wounds at $104.8 as sellers take a pause after celebrating the week’s largest decline the day before. In doing so, black gold rebounds off a short-term crucial support confluence composed of the 100-day exponential moving average (EMA) and an upwardly sloping trend line from late May.
In light of the bearish MACD indications and the absence of an oversold RSI, as well as the continuous trading below the 21-day EMA, bears are expected to maintain control.
Consequently, a decisive downward breach of the $103.70 support confluence is required for the south-run to hit the monthly low at $101.70.
Around $102.30, the 61.8 percent Fibonacci retracement of the late-February to early-March uptrend may provide a stop throughout the decline.
Alternately, a break above the 21-day exponential moving average, now at $109.55 as of press time, requires confirmation from the weekly high of $112.72 to recall WTI buyers.
After that, commodities prices may aim for the monthly peak of $121.35 before attempting to challenge the annual peak at $126.50.