West Texas Oil is following in accordance to the signal published in our previous analysis with bearish projections and we tend to stick to the same plan for now with dovish maneuver towards our targeted destination at 74.80 and 76.30 WTI takes offers to refresh intraday low around $79.20, down 0.65% on the day during early Monday. In doing so, the black gold tests the lowest levels in one week during the four-day downtrend.

Behind the moves could be the fears of the US sale of fuel from the Strategic Petroleum Reserve (SPR) as well as sluggish market sentiment. In doing so, the commodity prices ignore geopolitical tension between Eurozone and Belarus. During the weekend, US Senate Majority Leader Chuck Schumer urged President Joe Biden administration to approve fuel sales from the nation's SPR. The talks have been loud in the last few days and may recall the sellers if approved. Though, the OPEC+ refrain to entertain easy output should challenge the oil bears.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICALS)

Inside the area between $79.25 and $83.50 key technical levels, as mentioned above, multiple levels near $82.00 and the $80.00 round figure may test the WTI bulls.

Meanwhile, a downside break of the $79.25 support line will direct the oil benchmark towards the 61.8% Fibonacci retracement (Fibo.) of September 30 to October 25 upside, near $77.60.

Following that, late September’s peak near $76.50 and the six-week low of $73.00 will gain the WTI bears’ attention. Also be careful of the six-week-old support line near $79.00 restricts short-term WTI moves, a break of which will challenge the monthly low near $77.60. Alternatively, the $80.00 threshold and 20-DMA near $81.70 restrict short-term recovery.

WTI to extend its fall towards $77.60

Nov 15 2021