WTI Price Analysis: Breaks short-term resistance on Iran’s rumored avenge for Soleimani
- WTI takes the bids after clearing a descending trend line from last Tuesday.
- Monthly resistance line, 50-bar SMA questions the bulls going forward.
- Iran is understood to be plotting against the US Ambassador for South Africa.
Politico’s headlines suggesting Iran’s plan to avenge the death of Qassem Soleimani triggers WTI’s run-up towards $38.00, currently up 0.62% on a day near $37.85 during early Monday.
Read: Officials: Iran weighs plot to kill US ambassador to South Africa – POLITICO
With the fundamentals taking clues from technical support, oil prices are likely to remain on the front foot. The up-moves also gain the backing of RSI conditions that slopes upward from the oversold conditions.
Hence, a descending trend line from September 02 and 50-bar SMA, respectively around $38.15 and $39.25, are popping up on the buyers’ radar.
Should the commodity manages to cross $39.25, the $40.00 threshold and September 03 low near $40.45 will return to the charts.
Meanwhile, the black gold’s downside break of the $37.55, the previous resistance line from September 08, can recall $37.00 before challenging the monthly low near $36.40.
If at all the bears sneak in around $36.40, the mid-June bottom surrounding $34.60 will become their favorite.
WTI four-hour chart
Trend: Further recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
