WTI Price Analysis: Oil sellers face rejection below $39.30 for third straight day

• WTI fades the drop to sub-$39.30 levels for the third consecutive day. 
• The repeated bear failure may entice buyers and yield a bounce. 
• However, Sept. 18 high remains a level to beat for the bulls.

West Texas Intermediate (WTI), the North American oil benchmark, is trading largely unchanged on the day near $39.50 at press time, having hit a low of $39.12 an hour ago. 

The black gold has found dip demand below $39.30 for the third straight day. While prices fell by 4% on Sept. 21, the sellers could not establish a foothold below $39.00. 

The repeated bear failure near $39.00 could invite buying pressure, although the technical outlook would turn bullish only after prices rise above the lower high of $41.72 created on Sept. 18. 

Alternatively, a close below $39.00 would shift the focus back to the bearish Doji reversal pattern confirmed by Monday's 4.3% decline and open the doors for a re-test of the Sept. 8 low of $36.13. 

Daily chart

Trend: Neutral

Technical levels