WTI braces for more decline below 61.8% Fibonacci retracement
- WTI prints some gains in the Asian session.
- The downside risk remains on the four hour chart.
- Bearish momentum oscillators tilt in favor of the bears.
Oil prices remain off lows and manage to stay above $ 64.90 during the Asian session. WTI is facing strong resistance near $ 66.50 on Wednesday, and prices came under selling pressure after hitting a daily high of 66.75.
At the time of writing, WTI is trading at $ 64.92, up 0.32% on the day.
WTI four hour chart
On the four-hour chart, WTI healed yesterday’s losses while working to recover the psychological $ 65 bar. Prices hover around the 50% Fibonacci retracement level placed near $ 64.80 with the possibility of falling towards $ 64.50 which is the 61.8% Fibonacci retracement level.
The Moving Average Convergence Divergence Indicator (MACD) is above the midline, after performing a bearish cross. This shows that the declines are gathering momentum and could potentially push prices towards a horizontal support of $ 64, followed by weekly lows of $ 62.88 (May 3).
If prices start to rise, the first hurdle emerges near the 38.2% Fibonacci retracement level near $ 65.30, then at $ 65.80. This coincides with the 23.6% Fibonacci retracement. Bulls will keep their eyes on Wednesdays at the high at $ 66.70.