WTI Price Analysis: Oil breaks weekly support line within rising wedge but $76.70 is the key for sellers

• WTI prints the first daily loss in five, reversing from three-month high.
• Bearish chart formation, impending bear cross on MACD and overbought RSI lures Oil sellers.
• Downside break of immediate support triggers commodity’s weakness towards mid-July top.
• 50-EMA adds strength to wedge’s support line, highlights $76.70 as the key level for energy bears.

WTI crude oil takes offers to refresh intraday low around $79.00 heading into Wednesday’s European session as the black gold reverses from the highest level since April 19 while printing the first daily loss in five. In doing so, the energy benchmark retreats from the top line of a five-week-long rising wedge bearish chart formation amid overbought RSI conditions.

That said, the latest downside break of an upward-sloping support line from Monday, now immediate resistance near $79.20, joins the looming bear cross on the MACD indicator to favor the WTI sellers.

With this, the Oil bears are well set to prod the mid-July peak of around $77.20. However, the commodity’s further downside needs validation from a convergence of the stated wedge’s bottom line and the 50-Exponential Moving Average (EMA), close to $76.70.

Following that, the 200-EMA level of around $73.80 and the previous monthly low surrounding $67.00 will be in the spotlight. That said, the $70.00 round figure may act as an intermediate halt.

It’s worth noting that the rising wedge’s theoretical target is the $64.00 threshold.

On the flip side, an upside break of the immediate support-turned-resistance line of around $79.20 could again aim for successful trading beyond the $80.00 psychological magnet.

In that case, March’s high of $81.00 and April’s peak of around $83.40 will lure the WTI bulls.

WTI crude oil: Four-hour chart

Trend: Further downside expected