WTI Price Analysis: Oil buyers stay hopeful beyond $77.80 despite pullback from 13

Nov 01, 2023

WTI crude oil remains mildly offered near $79.80 as it takes a U-turn from a two-week-old resistance line to print the first daily loss in three heading into Monday’s European session. In doing so, the Black Gold also justifies the bearish MACD signals while struggling to cheer the softer US Dollar, as well as China-inspired risk-on mood.

Also read: S&P 500 Futures, yields portray cautious optimism on China stimulus while preparing for US inflation, NFP

That said, a downward-sloping resistance line from August 09, around $80.15 by the press time, restricts the immediate upside of the energy benchmark.

Given the downbeat MACD signals and the latest retreat from the key resistance line, the Oil price may witness further pullback in the price.

However, a convergence of the 200-day and 50-day Exponential Moving Averages (EMA), around $77.80 at the latest, appears a tough nut to crack for the Oil bears.

Also acting as a short-term downside filter is the early July peak of around $77.15, a break of which will quickly drag the WTI crude oil price towards the high marked in May around d $74.70.

On the flip side, a daily closing beyond the stated resistance line, close to $80.15 will aim for the previous weekly high of around $81.70 before April’s top of $83.40.

In a case where the black gold remains firmer past $83.40, the current monthly high of around $84.35 will act as the last defense of the WTI sellers.

Trend: Limited downside expected

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