WTI Price Analysis: Bulls consolidate below $70.00 mark
- WTI edges lower on Friday in the Asian session
- Double top formation ignites some corrective pullback.
- Momentum oscillator remains comfortable in the positive zone.
The US crude oil pares some gains on the last trading day of the week on Friday. The prices stick around the $70 level after touching the YTD high at $70.50 in the previous session.
At the time of writing, WTI trades at 69.97, down 0.18% for the day.
WTI daily chart
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On the 4-hour chart, WTI has formed a double top formation near the $70.50 mark, a bearish reversal formation. The formation induced some selling pressure and prices corrected to $68.50 in the spur of the moment. However, crude oil recovered swiftly to claim back the $70 key psychological mark.
If WTI slips below the session’s low at $69.84 then it could retest the 20-hour Simple Moving Average (SMA) at $69.64 followed by the horizontal resistance level at $69.25.
The Relative Strength Index( RSI) indicator reads at 57, which indicates the underlying bullish momentum. Any downtick in the RSI would further intensify the selling pressure toward the low of June 8 at $68.35.
Alternatively, if prices sustain above the intraday high, then it could move back to the $70.25 horizontal resistance level followed by the previous day’s high at $70.50.
WTI bulls would then likely march in the direction of the levels last seen in May 2018 at the high of 72.85.
WTI additional level
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
