Crude Oil keeps pullback from 11-week high as eventful week begins
WTI Crude Oil remains pressured after reversing from an 11-week high the previous day, especially when the US Dollar posts a corrective bounce ahead of this week’s top-tier data/events. The black gold’s retreat also highlights the importance of the support-turned-resistance line stretched from mid-December 2023 and a downward-sloping trend line from late September last year. It’s worth noting that the RSI’s pullback from the overbought territory and the receding bullish bias of the MACD signals also favor the energy benchmark’s latest consolidation.
With this, the quote will likely extend the latest fall toward testing the 10-SMA support of $82.50. However, the 50% Fibonacci ratio of the commodity’s late 2023 fall and the 100-SMA, respectively near $81.40 and $80.40, quickly followed by the $80.00 psychological magnet, will challenge the Oil bears afterward. In a case where the prices remain weak past $80.00, an area comprising tops marked from mid-November 2023 to January 2024 near $79.70-25, will be the last defense of the buyers before giving control to the bears.
Meanwhile, a downward-sloping resistance line from September 2023, close to $84.10 at the latest, guards the immediate upside of the black gold. Following that, the previous support line from late 2023 will test the oil buyers near $84.70. It’s worth noting, however, that a 9.5-month-old falling resistance line surrounding $86.50 appears a tough nut to crack for the commodity buyers, a break of which will allow them to challenge the yearly high of $87.60.
Overall, Crude Oil is likely to witness further consolidation in prices as Fed Chair Jerome Powell’s bi-annual Testimony and the US Consumer Price Index (CPI) loom.
