• WTI fades bounce off one-week low below six-week-old resistance line, 100-SMA.
• Eight-day-old support line, fortnight-long horizontal area restrict short-term downside.
• Bulls need validation from $100.70 to retake control.

WTI crude oil prices drop back to $95.50 during Tuesday’s Asian session, after posting the first positive daily closing in four the previous day.

In doing so, the black gold retreats from the 50-SMA while recalling the bears. The downside bias also takes clues from the sluggish MACD and steady RSI.

However, an upward sloping trend line from July 14, around $92.80 by the press time, restricts the quote’s immediate weakness. Also acting as the downside filter is the two-week-old horizontal area near $91.60-80.

Should the WTI bears keep reins past $91.60, the odds of witnessing a slump towards the monthly low of $88.34, also the lowest level since February, can’t be ruled out.

Meanwhile, the upside break of the 50-SMA level, close to $96.15 at the latest, isn’t an open invitation to the WTI buyers as a convergence of the 100-SMA and a downward sloping resistance line from mid-June appear a tough nut to crack around $98.00.

Even if the quote manages to cross the $98.00 hurdle, the previous weekly high around $100.70 could test the upside momentum before giving control to the bulls.

WTI: Four-hour chart

Trend: Further weakness expected