WTI Price Analysis: Charting a bull flag, a test of $80 on the cards

WTI price regains poise after the profit-taking slide on Friday.
Tightening supplies from Libya offers the much-needed impetus to oil bulls.
WTI recaptures 50-DMA, with a potential bull flag formation on the daily sticks.

Dhwani Mehta FXStreet

WTI (NYMEX futures) is posting 1% gains so far this Monday, kicking off the first trading day of 2022 on the front foot.

The European equities have opened firmer, adding to the market’s optimism, in turn, boosting the higher-yielding oil price. Meanwhile, tightening oil supplies from Libya also offers support to the renewed upside in the black gold.

At the time of writing, the US oil is battling the $76 mark, trading close to the daily highs of $76.11. WTI hit fresh five-week highs of $77.25 on Thursday before ending the year on Friday at $75.26.

Technically, WTI is charting a bull flag formation on the daily sticks, in the wake of the recent consolidation that followed the rally from December 20 troughs.

A daily closing above the falling trendline resistance at $76.84 will validate a bull flag, opening doors for a rally towards the $80 mark.

Ahead of that target, bulls could face some strong resistance around November 26 highs of $78.10.

The 14-day Relative Strength Index (RSI) points higher above the midline, allowing room for more gains.

Oil buyers remain hopeful so long as WTI holds above the bearish 50-Daily Moving Average (DMA) at $75.83.

A sustained breach of the latter will expose the falling trendline support at $74.66. At that level, the horizontal 100-DMA aligns, making it a powerful hurdle.

WTI: Daily chart

WTI: Additional levels to watch

USOIL

Overview
Today last price	76.00
Today Daily Change	0.74
Today Daily Change %	0.98
Today daily open	75.26

Trends
Daily SMA20	72.52
Daily SMA50	75.53
Daily SMA100	74.23
Daily SMA200	70.85

Levels
Previous Daily High	76.87
Previous Daily Low	74.79
Previous Weekly High	77.26
Previous Weekly Low	72.46
Previous Monthly High	77.26
Previous Monthly Low	62.34
Daily Fibonacci 38.2%	75.59
Daily Fibonacci 61.8%	76.08
Daily Pivot Point S1	74.42
Daily Pivot Point S2	73.57
Daily Pivot Point S3	72.34
Daily Pivot Point R1	76.49
Daily Pivot Point R2	77.72
Daily Pivot Point R3	78.57

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.

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