WTI Oil Technical Analysis: Pullback likely before a convincing break above 50-day MA

Omkar Godbole FXStreet Contributor

WTI oil is currently trading just above the 50-day moving average (MA) of $52.60.

A price pullback could be in the offing before a convincing breakout above the MA, as the RSI on the 4-hour chart is reporting overbought conditions, validating the indecision or bullish exhaustion signaled by yesterday's doji candle.

4-hour chart

The RSI on the 4-hour chart is hovering above 70.00 in overbought territory. More importantly, the latest higher high on price is not confirmed by the indicator, that is a bearish divergence could be in the offing.

Daily chart

The bearish view put forward by the downward sloping 50-day MA would be reinforced if prices confirm a bear doji reversal with a close below $51.39. That could yield a test of demand below the psychological level of $50.00.
A close above $52.75 would signal bullish continuation.

Trend: Pullback likely

WTI

Overview:
    Today Last Price: 52.76
    Today Daily change: 20 pips
    Today Daily change %: 0.381%
    Today Daily Open: 52.56
Trends:
    Previous Daily SMA20: 48.14
    Previous Daily SMA50: 51.86
    Previous Daily SMA100: 60.88
    Previous Daily SMA200: 64.79
Levels:
    Previous Daily High: 53.03
    Previous Daily Low: 51.66
    Previous Weekly High: 49.41
    Previous Weekly Low: 44.52
    Previous Monthly High: 54.68
    Previous Monthly Low: 42.45
    Previous Daily Fibonacci 38.2%: 52.51
    Previous Daily Fibonacci 61.8%: 52.18
    Previous Daily Pivot Point S1: 51.8
    Previous Daily Pivot Point S2: 51.05
    Previous Daily Pivot Point S3: 50.43
    Previous Daily Pivot Point R1: 53.17
    Previous Daily Pivot Point R2: 53.79
    Previous Daily Pivot Point R3: 54.54

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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