WTI Price Analysis: Bulls target $41 mark amid a potential bull flag

WTI bulls consolidate before the next push higher.
A test of $41 is on the cards amid a favorable technical view.
US oil trades above all major hourly SMAs ahead of API data.

Dhwani Mehta FXStreet

WTI (August futures on NYMEX) is consolidating Monday’s nearly $2.5 recovery rally, as the bears continue to guard the 40.00 barrier in Asia this Tuesday.

The retreat, however, remains limited by the risk-on market mood and expectations of a fall in the US crude stockpiles from record highs. The American Petroleum Institute (API) is due to publish its weekly crude stocks change data later today at 2030 GMT.

From a near-term technical perspective, the US oil has charted a bullish flag formation on the hourly chart, with the pattern breakout to be confirmed only on an hourly closing above the 39.65 level.

A bullish breakout would open doors towards the test of the 41 handle and beyond, given the length of the flag pole equating to about $2.30. The hourly Relative Strength Index (RSI) is trading around 60.00, suggesting more room for upside should the bulls regain control.

The path of least resistance appears to the upside, as the black gold trades well above all the major hourly Simple Moving Averages (HMA).

Meanwhile, any pullback could meet fresh demand near 39.20/39.00 region, the confluence of the falling trendline support, horizontal 200-HMA and upward sloping 100-HMA.

Further south, strong support is located at 38.75, where the 100 and 50-HMAs intersect.

WTI hourly chart

WTI additional levels

WTI

Overview
Today last price	39.46
Today Daily Change	-0.20
Today Daily Change %	-0.50
Today daily open	39.66

Trends
Daily SMA20	38.38
Daily SMA50	31.04
Daily SMA100	33.81
Daily SMA200	45.34

Levels
Previous Daily High	39.92
Previous Daily Low	37.6
Previous Weekly High	41.65
Previous Weekly Low	37.18
Previous Monthly High	35.92
Previous Monthly Low	19.61
Daily Fibonacci 38.2%	39.03
Daily Fibonacci 61.8%	38.49
Daily Pivot Point S1	38.2
Daily Pivot Point S2	36.73
Daily Pivot Point S3	35.87
Daily Pivot Point R1	40.53
Daily Pivot Point R2	41.39
Daily Pivot Point R3	42.86

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.