WTI Price Analysis: Bulls struggle around 200-EMA, $92.00 a critical hurdle
|- The 200-period EMA is acting as a major barricade for the counter.
- A bullish flag formation adds to the upside filters.
- The RSI (14) is attempting a break above 60.00, which will strengthen the oil bulls.
West Texas Intermediate (WTI), futures on NYMEX, is displaying back and forth moves in a narrow range of $90.68-91.34 in the early Tokyo session. The black gold has turned sideways after delivering a juggernaut rally from a low near $87.00 on Wednesday. The north-side perpendicular move remained shy of $92.00.
A Bullish Flag formation on an hourly scale signals a continuation of bullish momentum after a rangebound phase. Usually, a consolidation phase denotes intensive buying interest from the market participants, which prefer to enter an auction after the establishment of the trend.
Bulls are struggling to cross the mighty 200-period Exponential Moving Average (EMA) at $91.40, however, the upside momentum assures a break sooner. The 50-EMA at $90.18 has started advancing higher, which warrants short-term optimism.
Meanwhile, the Relative Strength Index (RSI) is struggling to cross 60.00. A break of the same will unleash the oil bulls for upside.
A decisive move above Tuesday’s high at 92.00 will drive the asset towards the round-level resistance at 95.00, followed by an August 1 high at $97.57.
Alternatively, oil prices can lose momentum if it drops below Wednesday’s low at $88.46. An occurrence of the same will drag the asset towards the August 5 low at $86.40. A slippage below $86.40 will open doors for more downside towards the 9 November 2021 high at $83.34.
WTI hourly chart
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.