WTI Price Analysis: Oil extends recovery from multi-month low towards $72.00

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