WTI Price Analysis: Bulls struggle to cross $73.80 resistance level
- WTI prints some minor gains on Tuesday following previous day's sluggish movement.
- Bulls face critical resistance near the $73.80 level.
- Momentum oscillator remains in overbought zone with stretched buying conditions.
West Texas Crude Oil (WTI) edges higher Tuesday in the Asian trading session. The prices face a strong resistance near $73.80 as it struggles to break the level on a closing basis.
At the time of writing, WTI is trading at $73.77, up 0.21% for the day.
WTI daily chart
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On the daily chart, after testing a fresh YTD high on July 6, crude oil prices fell sharply the same day as bulls were not able to preserve the momentum.
WTI found support near $70.30 with double bottom formation.
If WTI breaks the intraday low, it could test the 20-day Simple Moving Average (SMA) at $73.08.
The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone with bearish momentum. Any downtick in the MACD could accelerate the selling pressure.
That said, the WTI bears could meet the next downside target at the $72.50 and the $ 71.20 horizontal support levels.
Alternatively, if prices move higher, it could retrace back to the high made at $74.26 a day earlier.
Next, the bulls attempt to test the $74.65 horizontal resistance level, followed by the high of July 5 at $75.82.
WTI additional levels
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.
