WTI Price Analysis: Oil’s recovery remains elusive below $79.20
|- WTI grinds within immediate bullish channel after snapping five-day downtrend.
- Key moving averages, monthly resistance line challenge buyers.
- Bears need to conquer $72.70 to retake control, $76.70 acts as immediate support.
WTI pares the week-start gains as it prints mild losses around $77.30 during Tuesday’s Asian session. In doing so, the black gold trades inside a two-day-old ascending trend channel.
Adding strength to the recovery moves could be the looming bull cross on the MACD, as well as a clear bounce off the six-week-old horizontal support zone, near $72.50-70.
It’s worth noting, however, that the quote’s upside break of the stated channel’s top, around $78.10 at the latest, could find it difficult to lure the Oil buyers as a convergence of the 50-SMA and the 200-SMA might restrict the black gold’s further upside near $78.40.
Even if the quote rises past $78.40, a downward-sloping resistance line from January 27 and the multiple tops marked since late January, respectively near $79.15 and $82.60-65 by the press time, will be crucial to watch for WTI traders past $78.40.
Meanwhile, pullback moves remain elusive unless staying inside the stated bullish channel, currently between $76.65 and $78.10.
Following that, $75.10 and $74.30 may entertain WTI crude oil bears before directing them to the “doubt bottom” marked around $72.50-65.
Overall, WTI is likely to remain firmer inside the $72.50 and $82.65 trading range.
WTI: Four-hour chart
Trend: Limited 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.