Prices of the WTI managed to advance past the $80.00 mark per barrel in past sessions, although still unable to close above it. Friday’s rising open interest coupled with the negative price action, however, hints at the idea that further correction lies ahead at least in the very near term. 

At current levels in the $78.75 region, WTI is still on course to post a weekly gain of around $3.50, which would mark a third successive week in the green. Order appears to have been restored in the capital city of Kazakhstan, with the President declaring constitutional order restored after Russia sent paratroopers to help the government quell widespread protests which had turned into an uprising.

BULLISH AND BEARISH CONDITIONS/ OPPORTUNITIES :

The commodity’s inability to cross the $80.00 threshold and downbeat MACD signals hint at the further downside of the quote.

However, a clear break of $78.00 won’t be necessary for the WTI bears as the 50-SMA level surrounding $76.90 tests the sellers.

On breaking the $76.90 support, WTI crude oil confirms a bearish chart pattern with theoretical target near late December’s low close to $66.00. Though, a convergence of the 200-SMA and 50% Fibonacci retracement (Fibo.) of November – December downside, around $72.80-90, will offer an intermediate halt during the fall.

Alternatively, an upside clearance of the $80.00 will be a trigger for the oil prices rally towards the $84.00, near to November’s top. Following that, the year 2021 peak near $85.00 will be in focus.

WTI Might Not Range Above 80.0

Jan 10 2022