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.

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


Today last price 39.46
Today Daily Change -0.20
Today Daily Change % -0.50
Today daily open 39.66
Daily SMA20 38.38
Daily SMA50 31.04
Daily SMA100 33.81
Daily SMA200 45.34
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



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