WTI Price Analysis: Recovery moves need validation from 200-DMA
- WTI fades bounce off 15-week low, grinds higher during the second positive day in four.
- Oversold RSI conditions favor rebound, 61.8% Fibonacci retracement guards immediate upside.
- Bears await a clear break of ascending support line from March.
WTI crude oil prices struggle to keep the previous day's recovery moves from late August around $67.00 during Friday’s Asian session.
The black gold’s stated rebound portrays the importance of an upward sloping trend line from March 23 with the oversold RSI conditions suggesting further recovery.
However, 61.8% Fibonacci retracement level of March-October upside, around $68.00, probes the oil buyers before directing them to the key 200-DMA hurdle of $69.85.
Also acting as an upside filter is the $70.00 threshold and 50% Fibo. near $71.20.
Alternatively, a daily closing below the multiday-old support line near $64.75 will redirect the WTI bears to attack August month’s low of $61.73.
Following that, the $60.00 round figure may probe the commodity sellers before directing them to March’s low of $57.27.
WTI: Daily chart
Trend: Further recovery expected