Oil prices have weakened after surrendering the critical support of $86.00. (Pivot Orderbook analysis)
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- Oil prices have weakened after surrendering the critical support of $86.00.
- The 20-EMA has acted as a major hurdle for bulls.
- A downside move towards the 38.2% Fibo retracement is highly expected.
The pair currently trades last at 85.01.
The previous day high was 89.25 while the previous day low was 85.99. The daily 38.2% Fib levels comes at 87.23, expected to provide resistance. Similarly, the daily 61.8% fib level is at 88.0, expected to provide resistance.
West Texas Intermediate (WTI), futures on NYMEX, are tumbling after failing to defend the critical support of $86.00 in the Asian session. The black gold has refreshed its seven-month low at $85.21 and is eyeing more weakness amid an overall bearish structure.
On a daily scale, the oil prices are declining towards the 38.2% Fibonacci retracement (placed from 21 April 2020 low at $8.46 to March 3 high at 126.51) at $81.23. The black gold is auctioning in a Falling Channel chart pattern whose upper portion is placed from June 14 high at $121.02 while the lower portion is plotted from May 19 low at $102.99.
The 20-period Exponential Moving Average (EMA) at $94.06 has acted as major resistance for the counter.
Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of dropping into the bearish range of 20.00-40.00, which signals a continuation of downside momentum.
A decisive drop below the round-level support of $85.00 will drag the oil prices towards the 38.2% Fibo retracement at $81.23, followed by July 6 high at $76.40.
On the flip side, bulls could defend the downside momentum and approach a bullish reversal if the asset oversteps August 29 high at $97.00. An occurrence of the same will send the asset towards the psychological resistance at $100.00 and July 8 high at $102.77.
Technical Levels: Supports and Resistances
XTIUSD currently trading at 85.01 at the time of writing. Pair opened at 86.71 and is trading with a change of -1.96 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 85.01 |
| 1 | Today Daily Change | -1.70 |
| 2 | Today Daily Change % | -1.96 |
| 3 | Today daily open | 86.71 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 90.36, 50 SMA 94.25, 100 SMA @ 101.77 and 200 SMA @ 95.49.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 90.36 |
| 1 | Daily SMA50 | 94.25 |
| 2 | Daily SMA100 | 101.77 |
| 3 | Daily SMA200 | 95.49 |
The previous day high was 89.25 while the previous day low was 85.99. The daily 38.2% Fib levels comes at 87.23, expected to provide resistance. Similarly, the daily 61.8% fib level is at 88.0, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 85.38, 84.06, 82.12
- Pivot resistance is noted at 88.64, 90.57, 91.9
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 89.25 |
| Previous Daily Low | 85.99 |
| Previous Weekly High | 97.28 |
| Previous Weekly Low | 85.77 |
| Previous Monthly High | 97.68 |
| Previous Monthly Low | 85.39 |
| Daily Fibonacci 38.2% | 87.23 |
| Daily Fibonacci 61.8% | 88.00 |
| Daily Pivot Point S1 | 85.38 |
| Daily Pivot Point S2 | 84.06 |
| Daily Pivot Point S3 | 82.12 |
| Daily Pivot Point R1 | 88.64 |
| Daily Pivot Point R2 | 90.57 |
| Daily Pivot Point R3 | 91.90 |
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