- WTI crude oil prints three-day uptrend but lacks bullish bias of late.
- Clear upside break of short-term resistance line, firmer RSI (14) line allows Oil buyers to retake control.
- 10-DMA checks energy bulls amid bearish MACD signals and cautious mood ahead of Jackson Hole Symposium.
- PBoC announced rate cuts, China braces for more stimulus to defend economic recovery.
WTI crude oil clings to mild gains around $81.15 during the three-day winning streak heading into Monday’s European session.
In doing so, the black gold jostles with the 10-DMA to extend the previous day’s upside break of a one-week-old descending resistance line, now immediate support around $79.90. Adding credence to the bullish bias is the firmer RSI (14) line, not overbought.
It’s worth noting that China took multiple steps, via the People’s Bank of China (PBoC) and fiscal measures, which in turn allowed the energy benchmark to remain firmer of late.
However, the cautious mood ahead of this week’s top-tier PMIs for August and the annual central bankers’ event at the Jackson Hole checks the WTI crude oil buyers. Also limiting the black gold’s immediate upside is the 10-DMA level of around $81.40 and the bearish MACD signals.
Even so, the bearish signals from the MACD indicator appear losing the momentum of late and the odds of WTI’s consolidation of previous pullback ahead of top-tier data/events can’t be ruled out.
With this, the WTI crude oil buyers may expect further upside of the energy benchmark past the 10-DMA hurdle toward the $82.00 round figure.
Though, an upward-sloping resistance line from January, close to $84.50 at the latest, appears a tough nut to crack for the Oil bears.
On the contrary, a downside break of the resistance-turned-support line of around $79.90 needs validation from the 200-DMA support of $76.00 to give control to the bears.
WTI crude oil: Daily chart
Trend: Further upside expected
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