WTI Crude Oil Pulls Back to Key Support Zone

The WTI crude oil market is showing signs of potential support at $79.95, according to technical analysis. This level corresponds to a 61.8% Fibonacci retracement and the 50-day moving average, which are both indicators that suggest a reversal could begin at or above the 200-day moving average.

A rising trendline also intersects this price area, further adding to the possibility of support holding.

However, any bounce before crude reaches the $79.95 to $78.70 support zone is not likely to go far before finding sustained resistance.

The larger pattern unfolding in the market is a symmetrical triangle, with the current decline potentially contributing to the formation of its next higher swing low. A breakout through either the upper or lower boundary of the triangle could trigger a strong directional move.