WTI technical analysis: At session highs but looks heavy

WTI oil has hit session highs above $58.40 after a bullish daily close.
Intraday charts are reporting overbought conditions.
A pullback to $58.00 could be seen in the next few hours.

Omkar Godbole FXStreet Contributor

WTI’s rise to session highs above $58.40 could be short-lived and prices could deflate to $58.00 over the next few hours, according to technical charts.

On the 15-minute chart, the relative strength index is creating a bearish divergence (lower highs).

Further, the indicator is reporting overbought conditions with an-above 70 print on the 4-hour and hourly charts.

Hence, WTI could soon come under pressure. The dips to or below $58.00, however, could be short-lived, as the daily chart moving average convergence divergence histogram has turned bullish and the Black Gold printed a bullish daily close above $57.62 on Tuesday.

15-minute chart

Trend: Pullback likely

Pivot points

1. R3 6.9118
2. R2 6.9049
3. R1 6.8972
PP 6.8904
1. S1 6.8827
2. S2 6.8758
3. S3 6.8682

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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