WTI Price Analysis: Teasing triangle breakout on 1H chart ahead of OPEC+ meeting
|
- WTI looks north amid a likely descending triangle on hourly charts.
- Vaccine optimism eases economic growth and oil demand concerns.
- All eyes on OPEC+ meeting and API weekly US crude stocks data.
WTI (futures on NYMEX) has caught a fresh bid wave over the last hour, as it looks to regain the $42 level amid expectations that the OPEC and its allies (OPEC+) will delay the oil output hike by three to six months when they meet later on Tuesday.
Further, the optimism over a quicker economic turnaround and in turn improved prospects for oil demand, flagged by the encouraging covid vaccine news, also continue to support the black gold.
From a short-term technical perspective, the price is consolidating after Monday’s rally, carving out a descending triangle formation on the hourly chart.
The pattern will get validated on an hourly closing above the falling trendline resistance, currently at $41.83.
Acceptance above the latter could call for a test of the previous day’s high at $42.34, with eyes on the $43 level.
The hourly Relative Strength Index (RSI) is advancing further above the midline, allowing for additional upside.
On the flip side, a breach of the horizontal trendline support at $41.36 will invalidate the pattern, opening floors towards the upward-sloping 50-hourly moving average (HMA) at $41.23.
WTI hourly chart
WTI additional levels
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.