WTI Price Analysis: Bulls approach $115.00 inside fortnight-old descending triangle
|- WTI extends recovery from weekly low as triangle’s support, 200-SMA defend bulls.
- MACD, RSI adds strength to the upside bias but bulls need validation from $118.00.
- Bears have a bumpy road to travel before retaking control.
WTI remains on the front foot heading into Friday’s European session, after bouncing off a two-week low the previous day. That said, the black gold picks up bids around $114.64, up 0.13% by the press time.
The oil benchmark refreshed its weekly low the previous day before recovering from the 200-SMA. In doing so, the commodity prices also rebounded from the early June levels.
Thursday’s U-turn could be joined with the quote’s gradual easing since June 08 to portray a short-term descending triangle bullish chart pattern.
In addition to the chart pattern and the recovery from 200-SMA, steady RSI and impending bull-cross on the MACD also keep buyers hopeful.
It’s worth noting, however, that the WTI needs to cross the triangle’s upper line, around $118.00 by the press time, to convince the bulls to challenge the monthly top near $121.35.
Failing to do so can again drag it back to the 200-SMA level of $111.65.
Should the quote drops below $111.65, the lower-end of the stated triangle, near $110.00, could lure the WTI sellers.
Following that, 61.8% Fibonacci retracement (Fibo.) of the May-June downturn and mid-May swing low, respectively around $106.50 and $103.00 may entertain the energy benchmark ahead of highlighting the $100.00 psychological magnet.
WTI: Four-hour chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.