WTI Price Forecast: Awaits range breakout

WTI is extending its week-long consolidation pattern.
A range breakout could bring in additional buying pressure, yielding a move to resistance above $29.

Omkar Godbole FXStreet Contributor

The US oil prices are lacking a clear directional bias for the sixth straight day.

West Texas Intermediate's front-month contract is sidelined near $25.35 at press time. Prices have been restricted to a range of $26.74 to $22.58 since last Wednesday.

A daily close above the top end of the range would imply a continuation of the rally from the April 28 low of $10.07 and open the doors to resistance at $29.13 (April 3 high). Alternatively, a move below the lower end of the range at $22.58 would suggest the recovery rally has ended and the bears have regained control. In that case, a fresh sell-off toward $10 could be seen.

Note that the overall bias would turn bullish if and when the black gold finds acceptance above the resistance of the trendline falling from Jan. 8 and Feb. 20 highs. At press time, that trendline hurdle is located at $32.80.

Daily chart

Trend: Neutral

Technical levels

1. R3 28.44
2. R2 27.61
3. R1 26.72
PP 25.89
1. S1 25
2. S2 24.18
3. S3 23.29

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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