WTI technical analysis: Oil flirts with 50% Fib retracement level

• WTI is chipping away at a key Fib level. 
• The daily chart shows a death cross. 
• Bulls need to defend the recent low of $56.07. 

Currently, WTI oil prices are flirting with $58.61 - the 50% Fibonacci retracement of the sell-off from $66.58 to $50.63 - having printed a high of $58.91

The black gold charted a death cross, i.e. a bearish crossover of the 50- and 200-day moving averages (MA) on July 4. 

So far, however, the follow-through to the bearish MA crossover has been positive. Oil has risen from $56.32 to $58.91 in the last three trading days. 

The death cross would gain credence if the price drops below the higher low of $56.07 created on July 3. In that case, the June low of $50.63 could come into play. 

On the higher side, a move above $60.26 (July 1 high) is needed to revive the bullish outlook.

As for next few hours, the US oil prices could fall back to $58.30-$58.20, as the hourly chart is reporting a bearish doji reversal with the relative strength index holding above 70 (overbought reading). Key resistance is seen at $58.74, above which the high of $58.91 hit six years ago. 

Daily chart

Hourly chart

Trend: Neutral

Pivot point