WTI Price Analysis: Flat-lines above 100-hour SMA, $84.00 holds the key for bulls

• WTI crude oil prices continue to find support ahead of the $84.00 mark, or the 23.6% Fibo. level.
• The lack of follow-through buying warrants some caution before positioning for meaningful gains.
• A sustained move beyond the $86.00 round figure is needed to negate any near-term bearish bias.

WTI crude oil prices reverse an Asian session dip to the $84.15 area, though the intraday uptick lacks bullish conviction. The black liquid is currently trading around the $84.74-$84.80 region, nearly unchanged for the day.

From a technical perspective, the overnight pullback from the weekly high showed some resilience below the 100-hour SMA and found some support near the $84.00 mark. The said handle coincides with the 50% Fibonacci retracement level of the recent fall from the monthly peak and should now act as a pivotal point.

A convincing break below will suggest that the corrective bounce witnessed over the past two trading sessions has run out of steam and will shift the bias back in favour of bearish traders. WTI crude oil prices might then accelerate the fall towards the $83.00 round figure en route to the $82.75-$82.70 support.

The next relevant support is pegged near the $82.00 mark, below which WTI crude oil prices could retest the weekly low, around the $81.25 region. Some follow-through selling would make the commodity vulnerable to extending its recent sharp downfall from the monthly peak touched at the beginning of the previous week.

On the flip side, any subsequent strength beyond the $85.00 mark is likely to confront resistance near the 38.2% Fibo. level, around the $85.55-$85.60 region. This is 
followed by the $86.00 mark, or the 200-hour SMA, which if cleared should lift WTI crude oil prices towards the overnight swing high, near the $86.90 area.

WTI 1-hour chart

Key levels to watch