WTI Crude Oil: Pullback Targets $78-$80 Support Zone
WTI crude extended its pullback after a wedge breakdown. The next support zone around $78.70-$79.95 includes the 200-day MA and Fibonacci levels. A larger triangle pattern suggests a breakout ahead.
WTI crude oil extended its pullback on Tuesday after breaking down from a rising bearish wedge on Monday. The move tested the 20-day moving average, with sellers holding the lower third of the day's range.
The next support zone runs from $79.95 to $78.70. That area includes the 200-day moving average near $78.78 and the 61.8% Fibonacci retracement at $79.95. The 50-day moving average at $79.31 and a rising trendline also fall within the zone. Based on the wedge breakdown, any bounce before crude tests that area is unlikely to sustain, the analysis noted.
A symmetrical triangle pattern is taking shape, with the current decline potentially forming the next higher swing low. The triangle's apex is around October 21, but a breakout could develop before mid-September. The prior pattern breakout in early March led to a sharp advance, making the next swing low critical for the larger structure, according to the analysis.
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