- WTI is chipping away at a key Fib level.
- The daily chart shows a death cross.
- Bulls need to defend the recent low of $56.07.
Currently, WTI oil prices are flirting with $58.61 – the 50% Fibonacci retracement of the sell-off from $66.58 to $50.63 – having printed a high of $58.91
The black gold charted a death cross, i.e. a bearish crossover of the 50- and 200-day moving averages (MA) on July 4.
So far, however, the follow-through to the bearish MA crossover has been positive. Oil has risen from $56.32 to $58.91 in the last three trading days.
The death cross would gain credence if the price drops below the higher low of $56.07 created on July 3. In that case, the June low of $50.63 could come into play.
On the higher side, a move above $60.26 (July 1 high) is needed to revive the bullish outlook.
As for next few hours, the US oil prices could fall back to $58.30-$58.20, as the hourly chart is reporting a bearish doji reversal with the relative strength index holding above 70 (overbought reading). Key resistance is seen at $58.74, above which the high of $58.91 hit six years ago.