WTI Price Analysis: Marches towards $80.00 on bull flag confirmation
- WTI picks up bids to reverse the week-start pullback from fortnight high.
- Confirmation of bullish chart pattern, looming bull cross on MACD favor buyers.
- Convergence of 100-EMA, flag’s lower line restricts immediate downside.
WTI crude oil grinds higher around the intraday top of $79.68 during early Tuesday morning in Europe. In doing so, the black gold prints mild gains while reversing the previous day’s pullback from a two-week top.
That said, the quote’s latest gains could be linked to the confirmation of a bullish chart pattern, namely the “bull flag” on the hourly play. Also underpinning the run-up could be the impending bull cross on the MACD indicator.
As a result, the WTI is on the way to the theoretical target surrounding $85.50. However, the monthly peak of $81.55 and the previous month’s high of $83.30 could probe the Oil buyers.
It’s worth noting that the energy benchmark’s latest run-up also takes clues from the firmer prints of the RSI (14).
Meanwhile, WTI pullback remains elusive unless the quote remains beyond the $78.45 resistance confluence, including the 100-bar Exponential Moving Average (EMA) and lower line of the two-day-old bull flag.
In a case where the energy benchmark stays weaker past $78.45, the odds of witnessing a slump toward the monthly low of $72.65 can’t be ruled out.
Overall, WTI crude oil remains on the buyer’s radar unless it drops below $78.45.
WTI: Hourly 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.
