West Texas Intermediate (WTI) oil prices have been under pressure, extending their losses for the second consecutive session. As of Thursday morning, the price hovered around $71.40 per barrel, a key level that marks a breach of the previously bullish ascending channel pattern.
WTI Breaks Below Key Support Levels
The WTI price chart shows a weakening bullish trend as the price has slipped below $71.50, signaling potential further downside. This breach of the ascending channel pattern could suggest that the oil market is losing momentum, which could pave the way for a deeper pullback in the coming sessions.
Looking at the technical indicators, WTI may find immediate support near its nine-day Exponential Moving Average (EMA) at $70.72 and the 14-day EMA at $70.62. These levels are crucial as they could act as a floor for the price, providing a potential rebound zone if the market holds above these EMAs.
RSI Signals Potential Shift in Momentum
Another key technical signal to watch is the 14-day Relative Strength Index (RSI), which is currently hovering just above the 50 level. The RSI is a momentum indicator that helps assess whether an asset is overbought or oversold. While the RSI’s position above 50 suggests that the bullish bias is still in play, a dip below the 50 threshold could signal a shift towards a bearish trend. This would add to the growing concerns of weakening bullish sentiment in the oil market.
Also read : Why WTI Oil Prices Dropped 3%- Insights On Election, OPEC+And Economic Data
Bearish Breakout Could Intensify Price Decline
If the RSI falls below the 50 level and the price fails to reclaim the ascending channel, WTI could face further downside risk. A break below the immediate support at $70.62 could open the door to a deeper decline, with the next key support likely to emerge at $70 or lower. Conversely, if the price manages to re-enter the ascending channel, WTI could find resistance around $73, potentially triggering another attempt to rally.
