WTI Price Analysis: Eases from monthly top but bulls not out of the woods
- WTI crude oil consolidates recent gains, pressured around intraday low.
- Bullish MACD signals join upside breaks of previous key resistance to keep buyers hopeful.
- Further upside awaits $74.65 break, intraday sellers aim for $73.20-15 as immediate support.
WTI crude oil retreats from a one-month high to $73.65 by the end of Thursday’s NY settlement. In doing so, the black gold justifies overbought RSI conditions to pause a three-day uptrend.
However, the quote remains beyond the 200-SMA level of $73.50, which in turn joins the bullish MACD signals to favor energy bulls.
Also adding to the bullish bias is the commodity’s clear upside break of a descending trend line from early November and a horizontal line comprising monthly resistance.
That said, November 21 swing low near $74.65 guards the commodity’s immediate upside ahead of an expected run-up towards the $77.00 threshold. Following that, late November highs near $79.00 and the $80.00 round figure will be watched carefully by WTI buyers.
Alternatively, WTI’s break of the 200-SMA level near $73.50 will immediately drag the quote towards a three-week-old horizontal line, close to $73.30.
Adding to the downside filter is the 50-SMA level of $70.80 and the $70.00 psychological magnet.
However, oil buyers remain positive until the quote stays above the previous resistance line from early November, surrounding $69.75.
WTI: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
