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WTI Crude Oil Downward Drift Resumes After Another Failed Bounce

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Aayush Jindal

Key Highlights

  • WTI Crude Oil started a fresh decline below $92.00 and $90.00.
  • A bearish trend line is forming with resistance at $87.50 on the 4-hour chart of XTI/USD.
  • Gold prices started a consolidation phase above the $4,000 handle.
  • Bitcoin slowly moved lower and settled below $75,000.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil prices failed to remain stable above $100.00 against the US Dollar. The price dipped below $92.00 to move into a short-term bearish zone.

Looking at the 4-hour chart of XTI/USD, the price settled below $90.00, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It traded as low as $84.11 and is currently attempting to recover.

On the upside, the price could face resistance at $87.50. There is also a bearish trend line forming with resistance at $87.50. The first major resistance could be near $92.00 and the 23.6% Fib retracement level of the downward move from the $105.60 swing high to the $84.11 low.

A close above $92.00 could send Oil prices toward $95.00. Any more gains could open the door for a move to $100.00. If there is another decline, the price might find bids near $85.00.

The next support sits at $82.50. The main support could be $80.00. A close below $80.00 could initiate a move to $76.50 in the coming days. Any more losses might send the price to $70.00.

Looking at Gold, the bulls seem to be holding back as the price failed to clear the $4,120 resistance zone.

Economic Releases to Watch Today

  • ECB's President Lagarde speech.
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