WTI Crude Oil Breaks Neckline, Faces Bearish Resistance

WTI crude oil has been on a downward trend after breaking through the neckline of a head and shoulders top pattern near $79.00, according to analysts at fxdailyreport.com.

The price decline extended to the $74.30 area before buyers stepped in, causing the commodity to climb back toward the broken support in a corrective bounce.

Using Fibonacci retracement analysis, sellers could be lurking on this pullback around the 38.2% level at $79.11, which coincides with the former neckline.

The 50% and 61.8% levels are also significant resistance zones at $80.59 and $82.08, respectively.