WTI technical analysis: Sellers target 54.80/70 on failure to cross key resistance-confluence

• 38.2% Fibonacci retracement, 200-day and 50-day SMAs limit WTI’s immediate upside.
• $57.30 – $57.00 seems key near-term support ahead of medium-term ascending trend-line.

Not only 200 and 50-day SMAs but 38.2% Fibonacci retracement of December – April upswing also limit WTI rise as the quote drops to sub-$57.00 area heading into the European open on Wednesday.

While early-month low surrounding $56.00 becomes an immediate support for the black gold, extended downside might not refrain from visiting $54.80/70 horizontal support-zone comprising current month low and early June high.

In a case prices slip below $54.70 on a daily closing basis, a 7-month old ascending trend-line at $53.00 could gain bears’ attention.

Alternatively, $57.00 - $57.30 region including 38.2% Fibonacci retracement,  200 and 50-day simple moving average (SMA) seems the tough upside resistance that holds the key to the energy benchmark’s rise towards $60.00 and then to a downward sloping trend-line since late-May, at $60.30.

WTI daily chart

Trend: Pullback expected