October 3, 2023

Bullish bias stays intact despite pullback from two-month high

  • WTI consolidates the biggest daily gains in five weeks around November tops.
  • Clear break of 11-week-old trend line keep buyers on the table.
  • 100-DMA adds to the downside filters, bulls eye 2021 peak.

WTI crude oil prices retreat from a multi-day high, down 0.25% intraday to $80.70 heading into Wednesday’s European session. In doing so, the black gold pares the biggest daily jump since early December.

However, the pullback moves remain elusive as the quote keeps the previous day’s upside break of a descending resistance line from October 25, now support around $78.60.

Even if the quote declines below $78.60, the 100-SMA level of $75.25 and 23.6% Fibonacci retracement of November 2020 to October 2021 upside, near $72.80 will challenge the WTI bears before directing them to the 10-month-long support line near $66.25.

Meanwhile, the year 2021 top $85.00 surrounding is likely on the WTI bulls radar, a break of which will direct the latest run-up towards the $90.00 psychological magnet.

In a case where WTI buyers remain dominant past $90.00, lows marked during January 2014 around $91.30 may test the advances.

WTI: Daily chart

Trend: Further upside expected


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