WTI crude oil prices grind lower around $70.40-50, up 0.10% intraday during early Friday. The US crude oil benchmark WTI falls during the New York session yestarday, trading at $70.34 at the time of writing. Concerns about COVID-19 restrictions and the omicron variant’s rapid spread dented investors’ mood and hit oil prices as lockdowns loom. That, alongside countries tapering some crude reserves, helped ease energy prices. According to sources cited by Bloomberg, “the market is still in calibration mode around the virus.” At the beginning of the week, global equities and oil rallied, on the back that the newly discovered strain, although highly transmissible, caused mild symptoms. However, 19,842 new cases reported from South Africa on December 8 increased market participants’ worries, which flew through safe-haven assets as they waited for additional omicron information.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The black gold posted the biggest daily losses in eight days the previous day, breaking 61.8% Fibonacci retracement (Fibo.) of August-October upside. However, the 200-DMA challenges the commodity sellers of late.

Given the steady RSI and the quote’s hesitance in breaking the 200-DMA, prices are likely to recover should they bounce back beyond the stated Fibonacci retracement level of $70.60. Following that, 50% Fibo. level of $73.35 may lure WTI bulls but a confluence of 100-DMA and descending trend line from November 10, near $73.75-80, will be a strong resistance to watch.

Alternatively, a daily closing below 200-DMA level of $70.00 will trigger a slump targeting an area comprising multiple supports around $67.50-30.

During the WTI oil bear’s dominance past $67.30, the recent low of $62.35 and August month’s bottom surrounding $61.75 will be in focus.

WTI Struggles Against Strong Technical Resistances

Dec 10 2021

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