WTI Price Analysis: Oil trades near expanding channel hurdle
- The US oil prices trade in an expanding channel.
- With daily RSI bullish, a breakout would expose August highs.
The West Texas Intermediate (WTI) crude, a North American oil benchmark, has carved out an expanding channel over the past two months.
Oil is currently trading in the red near $41.73 per barrel. The current prices are just short of the channel resistance at $42.10.
A close above that level would confirm a bullish breakout, validating the above-50 or bullish reading on the 14-day Relative Strength Index (RSI) and opening the doors to the August high of $43.78.
The bulls have failed multiple times in the past few days to force a bullish close. Another rejection could cause some buyers to exit the market, leading to a price pullback to $40.06 (Nov. 13 low).
Daily chart
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Trend: Neutral
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
