WTI Price Analysis: Declines towards 200-EMA, $85.00 a critical support

• Oil prices have turned sideways, downside remains favored on trendline violation.
• The black gold is expected to kiss the 200-period EMA sooner.
• An establishment of the RSI (14) in a bearish range of 20.00-40.00 adds to the downside filters.

West Texas Intermediate (WTI), futures on NYMEX, is hovering near $98.00 in the early European session. The black gold witnessed a juggernaut fall on Tuesday, after surrendering the critical support of the June 22 low at $101.17. The asset renewed the two-month low at $95.75.

On a daily scale, the breakdown of the upward sloping trendline dragged the oil prices swiftly. The above-mentioned trendline is placed from April 11 low at $92.65, adjoining April 25 low at $95.07 and May 11 low at $97.21 respectively.

The oil prices are declining towards the 200-period Exponential Moving Average (EMA) at $94.90. While the 50-EMA at $108.02 is much higher than the oil prices, which indicates that the short-term term is bearish.

The Relative Strength Index (RSI) 14 has shifted into the bearish range of 20.00-40.00, which signals more downside ahead.

For further downside, the oil prices need to violate Tuesday’s low at $95.75. This will dag the asset towards April 11 low at $92.65, followed by the critical support placed at $85.00.

On the flip side, bulls could regain strength if the asset oversteps June 22 low at $101.17, which will send the oil prices towards the round-level resistance of $105.00. A breach of the latter will advance the oil bulls towards Tuesday’s high at $109.54.

WTI daily chart