• The 200-EMA is providing a cushion to the asset.
• A re-test of the descending triangle chart pattern will put forward a bargain buy for investors.
• The RSI (14) seems to tumble near the oversold trajectory.

West Texas Intermediate (WTI), futures on NYMEX, has witnessed a steep fall since Monday after failing to sustain above the barricade of $108.00 on Monday. The asset has experienced a sheer downside and is balancing near the 200-period Exponential Moving Average (EMA), which is at $101.48.

On a four-hour scale, the oil prices are facing selling pressure after a strong rally post the breakout of the descending triangle formation. The horizontal support of the chart pattern is placed from March 15 low at $92.37 while the descending trendline is plotted from March 8 high at $126.51. The asset has slipped below the 20-EMA at $104.20, which signals a short-lived downside move.

The Relative Strength Index (RSI) (14) has slipped back to near 40.00 after oscillating in a bullish range of 60.00-80.00. This reflects a best-case scenario of entering into a bullish asset at oversold levels. The momentum oscillator is more likely to find support near the 30.00-40.00 range.

A pullback towards the psychological support of $100.00 will be a bargain buy for the market participants, which will send the asset towards April 13 high at $104.02, followed by Monday’s high at $109.13.

On the flip side, the asset may lose strength if it drops below April 8 high at $98.26. This will drag oil prices to March 15 low and February 25 low at $92.37 and $89.59 respectively.

WTI four-hour chart