WTI Price Analysis: Multiple hurdles to test recovery towards $90.00
- WTI picks up bids to extend Friday’s recovery from 13-day low.
- One-week-old descending trend line, support-turned-resistance from August 17 will precede 200-SMA to test bulls.
- RSI, MACD signals keep buyers hopeful, short-term rising trend line challenges fresh downside.
WTI crude oil grinds higher around $87.70 as it stretches Friday’s rebound during Monday’s initial Asian session. The black gold’s recovery moves also gain support from the RSI (14) and MACD to tease bulls to aim for the $90.00 threshold.
An impending bull cross on the MACD joins recently firmer RSI, not overbought, to keep buyers hopeful.
With this, the quote rises towards a downward sloping resistance line from the last Wednesday, around $88.75 at the latest.
However, a 13-day-old previous support line and the 200-SMA, respectively near $89.80 and $90.15, could challenge the WTI crude oil buyers afterward.
In a case where the black gold crosses the $90.15 hurdle, the August-end swing high near $92.55 will be in focus.
Alternatively, an ascending support line from Thursday, near $86.50, restricts the immediate downside of the commodity prices.
Following that, the recent low of around $85.80-75 precedes the previous monthly bottom near $85.40 to challenge the WTI bears.
Overall, oil prices are likely to remain firmer but the road to the north is a bumpy one.
WTI: Four-hour chart
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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.
