WTI Price Analysis: Hangs near multi-month low, downside risk remains

• WTI edges higher in the middle of the week in the early European trading hour.
• Bulls remain hopeful above $66.50 on a corrective pullback.
• Momentum oscillator holds onto oversold zone signifies underlying bearish momentum.

WTI prices edge higher on Wednesday following the previous four session’s decline. 

At the time of writing, WTI is trading at $66.66, up 0.49% for the day.

WTI daily chart

On the daily chart,  WTI has been under intense pressure since the beginning of the descending trend channel from the high of $76.40 made on July 6.

The formation of lower lows and lower highs tells about the bearish trend for oil prices. However multiple support formation near $66.50 makes it a crucial level to trade.

A corrective pullback in prices is expected toward the previous day’s high of $67.46 followed by the $68.90 horizontal resistance level.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any uptick in the MACD could aid the upward movement until the 20-day Simple Moving Average (SMA) at $69.78.

Alternatively, if prices move lower, it could retrace back to the low of $65.53 made on August 16.

Next, the bears would attempt to meet the $64.95 horizontal support level.

A daily close below the mentioned level would further encourage WTI bears to testify low of May 24 at $63.58.

WTI additional levels