WTI Price Analysis: Sellers lurk around $75.80 ahead of OPEC verdict
|- WTI snaps three-day uptrend, grinds lower around intraday low of late.
- Three-month-old horizontal hurdle, overbought RSI conditions challenge bulls.
- 10-DMA, six-week-old support line challenge seller’s entry.
- OPEC+ decision eyed amid chatters over supply increase.
WTI crude oil consolidates three-day gains around the highest levels since September 2018 ahead of Monday’s European session.
In doing so, the black gold prints 0.20% intraday loss while easing to $75.40 by the press time ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting.
Read: WTI snaps three-day uptrend beyond $75.00 ahead of OPEC meeting
Given the energy benchmark’s multiple failures to cross the 75.80 hurdle comprising the multiple tops marked since early July, coupled with the nearly overbought RSI line, WTI is expected to stretch the latest pullback moves.
However, a convergence of 10-DMA and an ascending support line from late August, near $73.90, will challenge the quote’s short-term downside. Also acting as nearby support is the 20-DMA level of $72.10.
It should be noted that the energy benchmark’s weakness past $72.10 will make it vulnerable to test the $70.00 threshold wherein the early September tops near $70.40 may offer an intermediate halt.
Alternatively, a daily closing beyond $75.80 will need validation from the $76.00 round figure before the October 2018 peak surrounding $76.90 gain the market’s attention.
In a case where WTI bulls dominate beyond $76.90, June 2012 low near $77.30 holds the key to the commodity’s rally towards the $80.00 psychological magnet.
WTI: Daily chart
Trend: Pullback expected
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