- WTI takes offers to refresh intraday low, prints the biggest daily losses in a week.
- Descending RSI line, failures to cross 100-EMA favor sellers.
- Break of $76.00 will confirm bearish chart pattern signaling further declines to $71.50.
WTI stands on slippery ground, down over 2.0% near $76.40 during early Friday. In doing so, the black gold drops the most in a week amid the three-day downtrend.
A one-week-old ascending triangle bearish formation portrays the commodity’s latest weakness, coupled with a downward sloping RSI line.
The quote currently drops towards the pattern’s support line near $76.00, a break of which confirms the theoretical fall towards the $71.50 level.
However, the recent low near $74.60 and July’s top of $74.20, followed by September’s high near $73.10, will act as intermediate halts during the south-run.
Meanwhile, the corrective pullback will eye for the 100-EMA level of $78.70 before directing the quote towards the stated triangle’s resistance surrounding the $79.00-20 area.
In a case where the WTI crude oil rises past $79.20, bulls will aim for the November 11 top near $81.10 before challenging the November 09 peak of $83.60.
Overall, WTI prices are likely to remain weak but a clear break of the stated triangle becomes necessary for the bears to keep reins.
WTI: Four-hour chart
Trend: Further weakness expected