WTI Price Analysis: Retreats from previous resistance around $88.00
- WTI pares the biggest daily gains in a week, fades recovery from eight-day low.
- Resistance-turned-support from late September guards immediate upside even as oscillators favor buyers.
- 200-SMA puts a floor under the oil prices, buyers need validation from $92.65.
WTI crude oil price eases to $87.90 after bouncing off a one-week low to print notable gains the previous day.
In doing so, the black gold takes a U-turn from a 12-day-old previous support line. However, sustained recovery from the 200-SMA and firmer RSI (14), as well as the impending bull cross on the MACD, seems to keep the commodity buyers hopeful.
That said, a clear upside break of the immediate trend line hurdle near $88.65 appears necessary for the oil bulls to keep the reins.
Following that, the 61.8% Fibonacci retracement level of late August-September moves, near $89.20, will be challenging the upside moves.
It should be noted, however, that a six-week-old horizontal resistance area near $92.25-65 will be a tough nut to crack for the WTI buyers.
Alternatively, pullback moves remain elusive unless breaking the 200-SMA level of $85.15.
If the oil bears conquer the stated SMA support, a downward trajectory to the late September swing high of $82.50 and the 23.6% Fibonacci retracement level of $81.10 can’t be ruled out.
WTI: Four-hour 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.
