Crude Oil Analysis: WTI set for more downside below 61.8% Fibonacci retracement

• WTI prints some gains in the Asian session.
• The risk to the downside remains on four-hour chart.
• Bearish momentum oscillators tilt in favor of bears.

Oil prices remain off the lows and manage to stay above $64.90 in the Asian session. WTI faces stiff resistance near $66.50 as of Wednesday, and prices came under selling pressure after making a daily high of 66.75.

At the time of writing, WTI is trading at $64.92, up 0.32% on the day.

WTI four hourly chart

On the four-hour chart, WTI has been nursing the previous day’s losses while making an effort to reclaim the $65 psychological mark. Prices are hovering around the  50% Fibonacci retracement level placed near $64.80 with the possibility of falling toward $64.50,  which is the 61.8% Fibonacci retracement level.

The Moving Average Convergence Divergence (MACD) indicator is above the midline, after completing a bearish crossover. This displays that bears are gaining momentum, and could potentially drag prices toward  $64 horizontal support,  followed by weekly lows of $62.88 (May 3).

If prices begin moving higher,  the first hurdle emerges near the 38.2% Fibonacci retracement level near $65.30, and then at $65.80. This Coincides with the 23.6% Fibonacci retracement. Bulls will keep their eyes on Wednesdays high at  $66.70.

WTI additional levels