WTI Price Forecast: Hangs near four-week low, around $89.00 as bears seem noncommittal
WTI drifts lower for the second straight day on Monday amid easing supply concerns.
Persistent geopolitical uncertainties help the black liquid hold above a four-week low.
The technical setup warrants caution before positioning for any further depreciation.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts sellers for the second straight day on Monday and sticks to its intraday losses around the $89.00 mark through the early European session. The commodity remains close to a four-week low, touched last Friday, amid easing supply concerns, though heightened geopolitical tensions help limit losses.
The G7 agreed on Friday to release 100 million barrels of crude and fuel products from emergency reserves. Furthermore, Middle Eastern crude exports rose above pre-war levels on four days during the final week of September, exerting some pressure on the black liquid. That said, flows through the Strait of Hormuz remain amid the US-Iran standoff, which, along with the widening Russia-Ukraine war, might hold back bears from positioning for any further depreciating move in crude oil prices.
From a technical perspective, the commodity needs to find acceptance below the 38.2% Fibonacci retracement of the July-September upswing to back the case for further losses towards testing sub-$88.00 levels. Any further decline, however, is more likely to attract fresh buyers and find decent support near the $85.00-$84.50 confluence – comprising the 50% retracement level and the 100-day Simple Moving Average (SMA). The said area would act as a pivotal point for crude oil prices amid mixed oscillators.
The Moving Average Convergence Divergence (MACD) stays below zero with a negative reading of -0.93 and the Relative Strength Index (RSI) hovers near a neutral 47, hinting at a moderating but still supportive trend rather than a decisive reversal. A convincing break below $84.50, however, should pave the way for a further downfall towards the 61.8% retracement at $80.73 and the 78.6% level at $74.84, ahead of the broader structural anchor down at $67.33.
On the topside, a break higher would first target resistance at the 23.6% Fibo. retracement at $94.13, with a subsequent extension opening the way toward the cycle high region around $102.40.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
WTI daily chart
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
