WTI Price Analysis: Extends bounce off 50-DMA to poke $104.00
- WTI remains on the front foot for second consecutive day after bouncing off 50-DMA.
- Receding bearish bias of MACD, firmer RSI underpin the run-up towards 10-DMA.
- Ascending trend line from December appears tough nut to crack for bears.
WTI grinds higher around $104.00, up 1.80% intraday heading into Friday’s European session.
In doing so, the black gold keeps Wednesday’s bounce off 50-DMA while justifying firmer RSI. Adding to the upside bias is the rebound in the MACD line.
That said, WTI crude oil buyers are all set to challenge the 10-DMA level at around $105.30. However, 23.6% Fibonacci retracement (Fibo.) of December 2021 to March 2022 upside, near $112.50, will challenge the commodity’s further upside.
Following that, a run-up towards the latest peak of 126.15 and then to the year 2008 high near $135.00 can’t be ruled out.
Alternatively, the $100.00 threshold restricts the short-term downside of the energy benchmark ahead of the 50-DMA level of $92.85.
Should the WTI sellers conquer the $92.85 level, the 61.8% Fibo. and a 3.5-month-long support line, respectively around $86.80 and $85.00, will be in focus.
WTI: Daily 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.
