WTI Price Analysis: Multiple hurdles to test recovery towards $90.00
|- WTI picks up bids to extend Friday’s recovery from 13-day low.
- One-week-old descending trend line, support-turned-resistance from August 17 will precede 200-SMA to test bulls.
- RSI, MACD signals keep buyers hopeful, short-term rising trend line challenges fresh downside.
WTI crude oil grinds higher around $87.70 as it stretches Friday’s rebound during Monday’s initial Asian session. The black gold’s recovery moves also gain support from the RSI (14) and MACD to tease bulls to aim for the $90.00 threshold.
An impending bull cross on the MACD joins recently firmer RSI, not overbought, to keep buyers hopeful.
With this, the quote rises towards a downward sloping resistance line from the last Wednesday, around $88.75 at the latest.
However, a 13-day-old previous support line and the 200-SMA, respectively near $89.80 and $90.15, could challenge the WTI crude oil buyers afterward.
In a case where the black gold crosses the $90.15 hurdle, the August-end swing high near $92.55 will be in focus.
Alternatively, an ascending support line from Thursday, near $86.50, restricts the immediate downside of the commodity prices.
Following that, the recent low of around $85.80-75 precedes the previous monthly bottom near $85.40 to challenge the WTI bears.
Overall, oil prices are likely to remain firmer but the road to the north is a bumpy one.
WTI: Four-hour chart
Trend: Further upside 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.