CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money before trading CFDs.

West Texas Crude Oil (WTI) Consolidates Above 100-DMA

July 20, 2021

Talking Points:

  • WTI bears are halted at the vital moving average support line.
  • Bearish MACD keeps the bears hopeful, while bulls require validation from March highs.

 

WTI is currently trading at 66.82 USD, up 0.50% intraday, at the start of Tuesday’s Asian trading session. The black gold fell to its lowest price since the end of May yesterday after it fell below the vital horizontal support line at 68 USD and now the resistance line, which was formed from March’s high.

However, the bears were unable to achieve a daily closing below the ascending trend line formed late on the 23rd of March and not to forget the 100-DMA (Daily Moving Average).

With the bearish MACD signals supporting the downward sentiment, apart from the black gold’s decline below March’s high, WTI bulls may hold from entering the market until a daily close above 67.90 USD is achieved.

From the bulls viewpoint the lows formed in mid-June and early July, respectively around 69.55 USD and 70.30 USD, will be obstacles for the oil bulls.

On the flip side, a daily closing below 65.80 USD will be needed for the bears to target the highs formed in late April, around 65.40 USD and then 64.35 USD.

If the WTI bears are able to maintain control of the market and drive the price below 64.35 USD, then May’s low around 61.50 USD could then come into the picture.

 

WTI Daily Chart:

 

 

 

Open an Account. Get started in less than 5 minutes