WTI Price Analysis: Falling wedge breakout favors Oil bulls, $77.00 guards immediate upside
- WTI picks up bids to extend previous day’s rebound from three-week low.
- Confirmation of bullish chart pattern, upbeat MACD signals favor Oil buyers.
- Convergence of 50-SMA, 100-SMA appears short-term key upside hurdle.
WTI crude oil bulls attack $76.00 during early Friday, around $76.10 by the press time, while stretching the previous day’s rebound from a three-week low. In doing so, black gold justifies confirmation of the bullish chart pattern, namely the falling wedge, as well as the bullish MACD signals.
As a result, the energy benchmark is well-set to extend the latest rebound towards a convergence of 50-SMA and 100-SMA, near $77.00-10.
However, multiple hurdles surrounding the $80.00 psychological magnet could challenge the WTI bulls past $77.10.
It’s worth noting that the falling wedge confirmation’s theoretical target appears $81.70. Following that, a five-week-long horizontal resistance area surrounding $82.60-70 could restrict the commodity’s further advances.
On the flip side, the stated wedge’s top line acts as an immediate support line, close to $75.80 by the press time.
Should the quote drops below $75.80, the recent swing low near $73.80 may act as a buffer before highlighting the area comprising the lows marked so far in 2023, close to $72.50-70.
Overall, Oil price regains buyer’s confidence even if the road toward the north appears long and bumpy.
WTI: Four-hour chart
Trend: Limited 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.
