Forex world

November 16, 2022

WTI mildly offered near $85.50

- WTI remains pressured towards a one-month-old ascending support line.

- Bearish MACD signals, failures to cross 21-DMA favor sellers.

- 100-DMA, double tops also challenge the upside moves.

WTI crude oil returns to the bear’s table, after bouncing off the monthly low the previous day. In doing so, the black gold drops to $85.60 during early Wednesday morning in Europe.

The energy benchmark’s latest weakness could be linked to its U-turn from the 21-DMA hurdle, currently around $86.90, as well as the bearish MACD signals.

However, an upward-sloping support line from mid-October, near $84.70 by the press time, challenges the quote’s further downside.

In a case where the commodity prices decline below $84.70, the October 18 swing low of around $81.30 becomes crucial as a downside break of the same will confirm the double-top bearish chart formation and can direct sellers towards the theoretical target of $70.00.

Meanwhile, an upside break of the 21-DMA isn’t an open welcome to the WTI bulls as a one-week-old resistance line near $87.50 could act as an extra upside filter. Following that, the 100-DMA can probe the oil buyers at around $89.60.

If the WTI run-up remains intact beyond $89.60, the $90.00 threshold could test the bulls before directing them to the crucial $92.60-90 resistance zone comprising the monthly high and October’s top.

Trend: Further downside expected

WTI: Daily chart

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