WTI Price Analysis: Grinds higher towards $74.55 hurdle
- WTI picks up bids to extend recovery from yearly low, seesaws around intraday high.
- One-week-old descending trend line, nearly overbought RSI challenge oil buyers.
- Convergence of 50-HMA, previous resistance line restrict immediate downside.
WTI crude oil stays on the front foot around $74.10 as it prints a two-day uptrend after posting a Doji candlestick nearly the yearly low on Friday.
In addition to the trend reversal suggesting candlestick formation on the Daily chart, the nearly oversold RSI conditions also triggered the black gold’s latest recovery.
The upside momentum gained acceptance after the bulls cross a one-week-old descending trend line and the 50-HMA.
However, the downward-sloping support line from the last Wednesday and the RSI (14), which is near the overbought territory, challenges the WTI crude oil’s immediate upside near $74.55.
In a case where the quote crosses the $74.55 hurdle, the 200-HMA level near $76.20 could challenge the commodity buyers.
Should the energy benchmark remains firmer past $76.20, the odds of witnessing a run-up toward $78.00 and then to the $80.00 round figure can’t be ruled out. Though, a monthly high of $83.30 will be a tough nut to crack for the WTI bulls afterward.
On the contrary, a convergence of the 50-HMA and the previous resistance line, around $72.30 by the press time, puts a floor under the quote.
Following that, a slump towards refreshing the yearly low, currently around $70.30, appears imminent. In that case, the $70.00 psychological magnet may gain major attention.
WTI crude oil: Hourly chart
Trend: Limited recovery expected