WTI Price Analysis: Justifies bullish RSI divergence, $92.30 in focus
- WTI holds onto the previous day’s recovery moves, grinds higher around daily top.
- Successful break of 100-SMA, bullish MACD divergence keep buyers hopeful.
- Two-month-old resistance line, 200-SMA restrict immediate upside.
- 12-day-old support line adds to the downside filters.
WTI crude oil buyers defend the $91.00 breakout heading into Tuesday’s European session. In doing so, the black gold justifies the previous day’s upside break of the 100-SMA, as well as the bullish MACD signals.
Additionally, the lower high on prices joins the higher high on the RSI (14) to portray the hidden bullish divergence of the commodity.
As a result, the quote aims for the downward sloping resistance line from late July, around $92.30.
However, the energy benchmark’s further upside hinges on how well the buyers can cross the 200-SMA hurdle surrounding $93.65.
Following that, a slow grind towards the monthly high of $95.90 and then to the $100.00 threshold can’t be ruled out.
On the flip side, pullback moves remain elusive until the quote remains above the descending resistance line from July 29, around $89.10. That said, the 100-SMA level near $90.45 restricts the immediate downside of the black gold.
It should be noted that the WTI crude oil’s weakness past $89.10 could make it vulnerable to refresh the six-month low, which in turn highlights the two-week-old support line, at $84.70 by the press time.
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.
