WTI Price Analysis: Back below 200-hour MA

• WTI has failed to hold above the 200-hour moving average. 
• Prices may drop to $58.77, filling the gap on the hourly chart. 

West Texas Intermediate (WTI) is currently trading at least 20 cents below the 200-hour moving average (MA) at $59.28, having hit a session high of $59.61 an hour ago. 

The failure to hold above the key average will likely allow a drop to Friday's close of $58.77. 

That would fill the gap created by today's higher open at $59.32. The black gold gapped higher in Asia as major OPEC producers Iraq and Libya halted production on Sunday on rising tension in the Middle East. 

If the support at $58.77 holds, the bullish cross of the 50- and 100-hour averages would gain credence and a bounce to $60 could be seen. 

On the flip side, a move through $58.77 support will likely expose the higher low of $58.25 created on Friday. A violation there would mark an end of the corrective bounce from the Jan. 15 low of $57.35. 

Hourly chart

Trend: Bearish

Technical levels