West Texas takes a 13.22% loss in just five trading sessions. The price of the commodity was affected by Fundamental News regarding OPEC agreeing to boost the supply. From a technical analysis standpoint, the pair prepares for a breakout of its highest level in seven years. The drop in the price would actually allow the pair to break the barrier in the medium term.
The price is slightly recovering, and it is up less than 1% on the current session; it broke three support levels in only three days. The price finally found support at the $65.11 level in the previous session, which is very close to our 61.8% Fibonacci retracement. The pair is now trying to attempt a breakout of the 67.14 resistance at the 50% retracement.
XTIUSD trades inside the Ichimoku cloud, which is moving up, indicating that an uptrend can be expected. Although some investors might believe that the markets are uncertain, the cloud is steep, and the price could be leaving the cloud soon.
The Bollinger bands are wide, and the price trades below the lower line, which could incentivize traders to start buying as the price is considered relatively low. The relative strength index dropped to 33%, a level not seen since October 2020, allowing the RSI to climb freely until it reaches 70% and enters an overbought status.
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