WTI edges closer to $80.00 amid a mixed market sentiment

Western Texas Intermediate (WTI) is advancing for the second day in a row, is trading at $79.31 up 0.93%, during the New York session at the time of writing. Meanwhile, WTI’s futures hit $80 a barrel for the first time since November 2014, as the global energy crisis continues.

Factors like the OPEC+ not increasing the crude oil output, and the US Energy Department said that it had no plans “at this time” to tap the national strategic oil reserves, have kept the ongoing rally.

The market sentiment is downbeat as portrayed by European and US stock indices, with the majority in the red, except for the FTSE 100 and the Dow Jones, rising 0.22% and 0.02%, respectively. Meanwhile, the greenback is down 0.15%, as portrayed by the US Dollar Index (DXY), clinging to 94.07.

WTI Price Forecast: Technical outlook

Daily chart

WTI is in a strong uptrend, portrayed by the daily moving averages (DMA’s) lying well below the price. 

The price is advancing towards $80.00. A daily close above the latter could pave the way for a move towards November’s 2011 lows around $84.00. The first resistance level would be $81.00, followed by October 29 of 2014, high at $82.84, and then $84.00.

On the flip side, WTI sellers will need a daily close, in line with Wednesday’s price action, below $77.00. In that outcome, the first support level would be September’s 28 high at $76.65. A breach of that level would expose crucial support levels, the psychological $76.00, followed by July ‘s 13 high at $75.47.

The Relative Strenght Index (RSI) is at 69, just exited from oversold levels, suggesting the uptrend bias remains and the price might consolidate before testing new highs.

KEY ADDITIONAL LEVELS TO WATCH