WTI Price Analysis: Mildly bid around $103.50 inside bearish pennant

• WTI dribbles inside a bearish chart pattern around six-week low.
• Steady RSI and sustained trading below 100-HMA favor bears.
• Eight-day-old resistance line adds to the upside filters.

WTI crude oil traders lick their wounds near $103.50, up 0.15% intraday, heading into Friday’s European session. In doing so, the black gold remains inside a two-day-old bearish pennant formation while taking rounds to the lowest levels in six weeks.

It’s worth noting that the quote’s failure to rise past 100-HMA and steady RSI, together with the aforementioned pennant, gives rise to hopes of witnessing the further downside.

However, a clear break of the $103.00 becomes necessary for the WTI bears to retake control.

Following that, the theory suggests a $20.00 slump in commodity prices. However, the recent low near $101.00 and the $100.00 psychological magnet may act as additional validation points for the commodity’s further downside.

Meanwhile, recovery moves should cross the pennant’s resistance line, at $105.20 by the press time, to recall the buyers.

Even so, the 100-HMA level of $106.40 and a downward sloping resistance line from June 14, close to $108.50 at the latest, could challenge the WTI crude oil’s further upside.

In a case where the black gold rises past $108.50, the $110.00 appears to be the last defense for the bears.

WTI: Hourly chart

Trend: Further weakness expected