- WTI remains on the back foot around one-week low, prints three-day downtrend.
- Chatters surrounding Russia leaving OPEC+, Saudi output increase favor bears.
- Clear downside break of monthly support and sustained trading below 50-SMA also keep sellers hopeful.
WTI bears keep reins around the weekly low during the third consecutive negative day, down 1.45% to $111.90 during Thursday’s Asian session.
The black gold’s latest weakness could be linked to speculations that Russia may leave the OPEC+ group, as well as talks of Saudi Arabia’s likely increase of oil output.
Also keeping sellers hopeful is the previous day’s downside break of an ascending support line from early May, now resistance surrounding $114.10.
Additionally, the quote’s sustained trading below 50-SMA, at $112.35 by the press time, also hints at the further downside.
That said, a horizontal area comprising multiple levels marked since May 19, near $108.00, gains the WTI bear’s attention.
However, a clear break of the 38.2% Fibonacci retracement of the May 10-31 upside, at $110.40, becomes necessary for the bears.
During the quote’s weakness past $108.00, the 200-SMA level of $106.60 will gain the market’s attention.
Meanwhile, the 50-SMA and previous support line, respectively around $112.35 and $114.10, can restrict the quote’s corrective pullback.
In a case where WTI remains firmer past $114.10, an upward trajectory towards $116.50 and the last monthly peak near $118.70 can’t be ruled out.
WTI: Four-hour chart
Trend: Further weakness expected