WTI Price Analysis: Descending triangle breakout on 1H calls for additional upside

WTI looks to extend gains above the $42 mark.
Descending triangle breakout confirmed on the hourly chart.
100-HMA at $41.73 offers powerful support.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) is back on the bids above the $42 mark, heading towards multi-day highs of $42.68 despite the risk-off market mood.

Concerns surrounding the covid growth worldwide and Fed-Treasury clash weigh on the investors’ sentiment.

From a technical perspective, the black gold has confirmed a descending triangle breakout on the hourly chart after closing the last hour above the falling trendline resistance at $41.96.

The next target for the bulls awaits at Wednesday’s high of $42.68, above which the $43 threshold will get tested.

The hourly Relative Strength Index (RSI) has turned south but remains well within the bullish region, currently at 55.06, allowing for more gains.

However, if the sellers fight back control, the US oil could drop back towards strong support near 41.95/90 region, where the falling trendline resistance now support coincides with the 50-hourly moving average (HMA).

The next critical cap is seen at the 100-HMA at $41.73. WTI has not given an hourly closing below that level since late Tuesday.

A breach of the last could bring the 200-HMA support back in play, which is at $41.55. Meanwhile, the pattern support is located at $41.30.

WTI hourly chart

WTI additional levels

WTI

Overview
Today last price	42.11
Today Daily Change	-0.01
Today Daily Change %	-0.02
Today daily open	42.07

Trends
Daily SMA20	39.53
Daily SMA50	39.82
Daily SMA100	40.61
Daily SMA200	37.06

Levels
Previous Daily High	42.16
Previous Daily Low	41.3
Previous Weekly High	43.28
Previous Weekly Low	37.43
Previous Monthly High	41.93
Previous Monthly Low	35.08
Daily Fibonacci 38.2%	41.83
Daily Fibonacci 61.8%	41.63
Daily Pivot Point S1	41.52
Daily Pivot Point S2	40.98
Daily Pivot Point S3	40.66
Daily Pivot Point R1	42.39
Daily Pivot Point R2	42.71
Daily Pivot Point R3	43.26

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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