WTI Price Analysis: Descending triangle breakout on 1H calls for additional upside
|- WTI looks to extend gains above the $42 mark.
- Descending triangle breakout confirmed on the hourly chart.
- 100-HMA at $41.73 offers powerful support.
WTI (futures on NYMEX) is back on the bids above the $42 mark, heading towards multi-day highs of $42.68 despite the risk-off market mood.
Concerns surrounding the covid growth worldwide and Fed-Treasury clash weigh on the investors’ sentiment.
From a technical perspective, the black gold has confirmed a descending triangle breakout on the hourly chart after closing the last hour above the falling trendline resistance at $41.96.
The next target for the bulls awaits at Wednesday’s high of $42.68, above which the $43 threshold will get tested.
The hourly Relative Strength Index (RSI) has turned south but remains well within the bullish region, currently at 55.06, allowing for more gains.
However, if the sellers fight back control, the US oil could drop back towards strong support near 41.95/90 region, where the falling trendline resistance now support coincides with the 50-hourly moving average (HMA).
The next critical cap is seen at the 100-HMA at $41.73. WTI has not given an hourly closing below that level since late Tuesday.
A breach of the last could bring the 200-HMA support back in play, which is at $41.55. Meanwhile, the pattern support is located at $41.30.
WTI hourly chart
WTI additional levels
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.