WTI Price Analysis: Oil extends recovery from multi-month low towards $72.00
- WTI picks up bids to extend recovery from December 2021.
- RSI rebound from oversold territory favors corrective bounce off the WTI Crude Oil price.
- Bearish MACD signals, multiple hurdles towards the north hint at limited upside room.
WTI crude oil prints a three-day uptrend as it extends a corrective bounce from the lowest levels since December 2021 to $71.70 heading into Monday’s European session.
In doing so, the black gold benefits from RSI (14) line’s rebound from the oversold territory.
However, the bearish MACD signals and a slew of upside hurdles challenge the energy buyers.
Among them, the 10-DMA level of around $73.00 acts as an immediate resistance for the WTI bulls to tackle.
Following that, a downward-sloping trend line from mid-April and the 21-DMA, respectively near $73.90 and $76.85, could restrict further advances in the commodity price.
In a case where the energy benchmark remains firmer past 21-DMA, the support-turned-resistance line from December 2022, close to $77.40 by the press time, can act as the last defense of the WTI bears.
Meanwhile, the 23.6% Fibonacci retracement level of the commodity’s downside from November 2022 to the last week’s bottom, near $71.00, limits short-term declines of the WTI crude oil price.
Should the quote remains weak past $71.00, the $70.00 round figure and $68.00 may rest the Oil bears before directing them to the latest multi-month low of around $64.30.
Overall, WTI crude oil is likely to extend the latest recovery but the road towards the north appears long and bumpy.
WTI crude oil: Daily 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.
