WTI Price Analysis: 200-bar SMA guards immediate upside beyond $41.00
|- WTI fizzles the run-up above $40.00 after flashing two-week high of $41.48.
- Overbought RSI conditions, strong SMA probe the bulls.
- Sellers await a clear downside break of 61.8% Fibonacci retracement level around the $41.00 area.
WTI consolidates the recent gains to $41.48 within a choppy range above $41.00, currently up 0.20% around $41.30, during the early Friday morning in Asia. The black gold surged to the highest since September 04 the previous day after breaking 100-bar SMA. Though, the 200-bar SMA seems to restrict the commodity’s latest up-moves amid overbought RSI conditions.
Considering the strength of the 200-bar SMA and signals of a pullback marked by the RSI, sellers remain hopeful. The same push them to look for entry if oil prices drop below the 61.8% Fibonacci retracement level of August 26 to September 08 downside, near $41.00.
In doing so, WTI will become vulnerable to revisit the 100-bar SMA level of $40.27 before catching a breather around the $40.00 threshold.
It should, however, be noted that a nine-day-old horizontal support linear $39.70 may question the energy bears after $40.00.
Meanwhile, an upside clearance of $41.42 figures, comprising 200-bar SMA, will aim for September 04 top of $42.07 before the August 27 bottom near $42.50 challenge further rise.
In a case where the WTI bulls dominate past-$42.50, August month’s top, also the highest since March 05, surrounding $43.85, will be in the spotlight.
WTI four-hour chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.