WTI Price Analysis: Extends bounce off 200-HMA towards $86.00 hurdle

WTI begins the Fed week on a positive note, extends Friday’s rebound from weekly low.
Three-day-old resistance line holds the key to further upside.
Bullish MACD signals, firmer RSI line keep buyers hopeful.
Seven-day-long support line adds to the downside filters.

Anil Panchal FXStreet

WTI takes the bids to refresh intraday high near $85.50, up 1.0% daily, during early Asian morning on Monday.

In doing so, the black gold extends the previous day’s recovery moves from the 200-HMA amid firmer RSI and MACD signals.

However, oil bulls need validation from a downward sloping resistance line from Thursday, near $86.00. Also acting as an upside filter is the recently flashed multi-month top near $86.93.

During the quote’s run-up beyond $86.93, the $87.00 threshold and the $90.00 psychological magnet may act as buffers before direct WTI crude oil buyers towards September 2014 high near $95.00.

Alternatively, pullback moves may retest the 200-HMA level of $83.40 whereas any further downside will be challenged by a short-term ascending trend line near $82.90.

If at all the WTI crude oil prices drop below $82.90, the 61.8% Fibonacci retracement of January 10-20 upside, around $81.00, will be crucial for traders to watch before welcoming sellers.

WTI: Hourly chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	85.48
Today Daily Change	0.83
Today Daily Change %	0.98%
Today daily open	84.65

Trends
Daily SMA20	79.78
Daily SMA50	75.41
Daily SMA100	76.35
Daily SMA200	72.38

Levels
Previous Daily High	85.37
Previous Daily Low	82.64
Previous Weekly High	86.93
Previous Weekly Low	82.64
Previous Monthly High	77.26
Previous Monthly Low	62.34
Daily Fibonacci 38.2%	84.33
Daily Fibonacci 61.8%	83.68
Daily Pivot Point S1	83.07
Daily Pivot Point S2	81.49
Daily Pivot Point S3	80.33
Daily Pivot Point R1	85.8
Daily Pivot Point R2	86.95
Daily Pivot Point R3	88.53

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.

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