Technical Analysis: WTI fails to clear 21-day EMA despite the geopolitical crisis in Libya/Iraq
News of blockage in Libyan exports and a shutdown of the Iraqi oil pipelines triggered oil's early-day run-up to the highest since January 10. However, the energy benchmark failed to clear 21-day EMA and is now under pressure to revisit an upward sloping trend line since early October, at $58.10. During the black gold's fall below $58.10, 50% Fibonacci retracement and 200-day EMA can question the bears around $58.00 and $57.75 whereas 61.8% Fibonacci level near $56.20 and November bottom close to $54.70 can please sellers then after.
If at all the energy bulls manage to defy $59.60 immediate upside barrier, $60.00 and December-end low near $60.65 can return to the charts. In a case where the oil prices manage to remain firm beyond $60.65, 23.6% Fibonacci retracement around $62.10 will be in focus as it holds the key to the further upside towards the early-month top.