WTI remains pressured after declining heavily in the last two days, @nehcap view: Limited downside expected, Pivot Orderbook analysis

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• WTI remains pressured after declining heavily in the last two days.
• Nearly oversold RSI might trigger another bounce off a two-week-long support.
• Multiple hurdles stand tall to challenge oil bears before the monthly low.
• Buyers need validation from the key SMAs, MACD also portrays rejection of bullish bias.

The pair currently trades last at 88.82.

The previous day high was 97.28 while the previous day low was 90.34. The daily 38.2% Fib levels comes at 92.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.63, expected to provide resistance.

WTI crude oil prices hold lower ground near $88.90 during Thursday’s Asian session, after dropping heavily in the last two days.

The black gold’s latest weakness could be linked to the sustained trading below the key SMAs, as well as bearish MACD signals. However, nearly oversold RSI (14) challenges the commodity’s further downside.

That said, an upward sloping support line from mid-August, around $88.00 by the press time, appears a short-term important level to watch for the WTI bears.

Following that, a horizontal area comprising multiple levels marked since early August, near $86.20-40, could test the downside momentum before highlighting the lowest levels since late January, marked on August 15 at around $85.40.

Alternatively, the 100-SMA and the 200-SMA could restrict short-term recovery moves of the WTI crude oil around $91.20 and $92.80 in that order.

However, the monthly horizontal resistance area and tops marked on Tuesday, respectively around $95.70 and $97.30, could challenge the upside momentum afterward.

Overall, WTI crude oil prices are weak but the downside room appears limited.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

XTIUSD currently trading at 88.82 at the time of writing. Pair opened at 92.07 and is trading with a change of -3.53% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 90.85, 50 SMA 96.17, 100 SMA @ 102.6 and 200 SMA @ 95.16.

The previous day high was 97.28 while the previous day low was 90.34. The daily 38.2% Fib levels comes at 92.99, expected to provide resistance. Similarly, the daily 61.8% fib level is at 94.63, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 89.18, 86.29, 82.24
• Pivot resistance is noted at 96.12, 100.17, 103.06

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