WTI Crude Oil Faces Crucial Resistance Amid Broader Uptrend
WTI crude oil has been trending downward since breaking through its ascending trend line at $93.83, which guided its climb from the $68.00 area.
The price dropped sharply before finding support around $83.10 and is now attempting a recovery back toward the broken trend line.
The Fibonacci retracement tool drawn from the $83.10 low to the $93.83 high suggests that if the bounce extends, it could reach the 38.2% Fib at $87.20, followed by the 50% level at $88.46, and possibly even the 61.8% Fib at $89.73, which aligns with where the broken trend line now resides.
However, this zone could serve as a ceiling due to its confluence with previous seller resistance. Additionally, the moving averages, with the 100 SMA above the 200 SMA and both sloping higher, suggest that the broader uptrend remains intact despite the recent trend line break.