• WTI has settled below 50-EMA for the first time in 2022.
• Bulls have lost momentum as the RSI (14) has dropped below the bullish range of 60.00-80.00.
• A mean reversion towards the trendline will bring offers to the counter.

West Texas Intermediate (WTI), futures on NYMEX, have been vulnerable in the past few trading sessions. The black gold 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, the asset is 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. The 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.

Should the 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.

WTI daily chart