WTI Price Analysis: Oil rises nearly 2.0% as bulls attack 50-EMA
- WTI picks up bids to refresh three-week high.
- Bullish MACD signals, clear break of previous resistance line favor buyers.
- Descending resistance line from June, 100-EMA challenge further upside.
WTI crude oil buyers keep the reins as they poke the 50-Exponential Moving Average (EMA) to refresh a three-week high around $80.90 during early Tuesday.
In doing so, the energy benchmark justifies the previous week’s upside break of a descending resistance line from November 07, as well as the bullish MACD signals.
As a result, the black gold is likely to overcome the immediate EMA hurdle surrounding $80.80, which in turn will allow buyers to aim for the downward-sloping trend line stretched from June, close to $83.60.
It’s worth noting, however, that the WTI’s upside past $83.60 appears difficult as the 100-EMA level surrounding $84.40 challenges the oil buyers afterward.
In a case where the quote rises past $83.60, November’s peak surrounding $93.00 should lure the commodity bulls.
Alternatively, pullback moves could initially aim for the $80.00 round figure before the mid-December swing high of around $77.80.
Though, a 12-day-old upward-sloping support line near $77.30 will precede the resistance-turned-support line from early November, close to $74.50, to challenge the WTI crude oil sellers.
Should the price remains weak past $74.50, the odds of witnessing a slump toward the monthly low near $70.30 can’t be ruled out.
WTI: Daily 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.
