Technical Analysis: No mercy of WTI traders despite oversold RSI
Although WTI recovers Monday's losses, the energy benchmark still stays below the monthly resistance line, which in-turn portrays the bears' dominance over the oil prices. However, $10.00 is likely an immediate downside barrier for the quote. Should there be a further downside below the year 1998 low, traders won't hesitate to challenge the $8.00 to recall the 1980's.
If an oversold oscillator manages to escalate the recovery moves beyond the support-turned-resistance line of $16.70, $21.00 could please the buyers. However, 21-day EMA and a downward sloping trend line from late-February, near $23.3, could check the bulls then after. Other than the technical signals, fundamentals are also in favor of a pullback considering the likely further production cuts from OPEC, US, Canada and Russia. Though, coronavirus carnage and the huge inventories keep disappointing the optimists.