WTI skids below EMA for first time in 2022

WTI futures have been vulnerable in the past few trading sessions. Crude oil has witnessed a steep fall after recording a multi-year high at $126.51. For the first time in 2022, the asset has closed below the 50-period Exponential Moving Average (EMA), trading at $98.36.

On the daily scale, crude oil was hovering around 50% Fibonacci retracement (placed from 2 December 2021 low at 62.34 to March 8 high at $126.51) at $94.55. It is worth noting that the asset has violated the trendline placed from 20 December 2021 low at $66.10. Oil prices have comfortably established below the 20-EMA, which is trading near $102.00.

The Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range from the bullish range of 60.00-80.00, which signals a consolidation ahead.

If WTI prices encounter a mean reversion to the trendline placed from 20 December 2021, the psychological figure of $100.00, bears will drag the asset towards the 50% Fibo retracement at $94.55, followed by 61.8% Fibo retracement at $86.91.

On the flip side, bulls may regain strength if the asset oversteps Tuesday’s high at $104.60, which will send the asset towards the round level resistance at $110.00. Surpassing the latter will drive the oil prices towards the March 24 high at $115.87.