WTI rallies for the sixth day in a row, eyes $80.00

• West Texas Intermediate reached a seven-year high at $79.23.
• The ongoing energy crisis keeps WTI’s upward bias unchanged.
• WTI: A breach above $80.00 could pave the way towards $90.00, as depicted by the weekly chart. 

West Texas Intermediate (WTI), the US oil benchmark advances for the fifth consecutive day, is trading at $78.67, up 1.59% during the day at the time of writing. 

The market sentiment remains upbeat, as can be witnessed by US stock indices rising between 0.74% and  1.53%. However, inflationary pressures keep threatening an economic slowdown. Crude oil is printing a fresh seven-year high boosted by surging natural gas prices, more expensive electricity across Europe, and China’s government ordering top state-owned energy companies to secure supplies for this winter at all costs.

Further, on Monday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) decided a minimal output increase of 400,000 barrels per day for November, triggering a $3 spike on WTI’s price.

Later during the American session, the American Petroleum Institute will release its Crude Oil Stockpiles for the week ending on October 1. The previous reading was 4.127M. If the release is below that figure, it could propel WTI price higher.

WTI Price Forecast: Technical outlook

WTI jumped above $78.00, left that price level as the first support. However, a daily close above $79.00 could push that first demand zone higher. 

In case of that outcome, the first resistance would be $80.00.  A break above the latter could pave the way for further gains, and a move towards $90.00 and beyond is on the books.

However, there would be some hurdles on the way up. The swing low of November 2012, around $84.04, would be the first resistance, followed by the January 2014 lows of approximately $91.21.

On the flip side, failure at $79.00, the immediate support would be $78.00. A breach of the latter would expose key support levels,  the July 6 high at $76.95, followed by the July 13 high at $75.47.

The Relative Strength Index (RSI) is at 74, aiming higher, in oversolde levels, suggesting that WTI could be headed for a lower correction before resuming its uptrend.

KEY ADDITIONAL LEVELS TO WATCH