- Oil prices are displaying a healthy correction after a juggernaut upside move.
- The black gold has attacked the prior balanced profile placed in an $85.77-90.14 range.
- A bullish range shift by the RSI (14) has strengthened bulls.
West Texas Intermediate (WTI), futures on NYMEX, has declined to near $85.20 in the Asian session after failing to sustain above $86.00. The black gold has attempted a bullish reversal after refreshing its six-month low at $80.94. The asset is picking significant bids as investors are considering the oil prices a ‘value bet’ after a meaningful decline from the all-time highs above 125.00.
On an hourly scale, oil bulls have stepped into the prior balanced profile (placed in an $85.77-90.14 range), which resulted in a bearish imbalance earlier. Investors should be aware of the fact that an entry into the prior balanced auction bolsters the odds of a bullish reversal.
The 20-and 50-period Exponential Moving Averages (EMAs) have delivered a bullish crossover at $83.66, which indicates more upside ahead.
Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which dictates that upside momentum has been triggered.
A decisive break above Friday’s high at $86.78 will send the major towards the round-level resistance at $90.00, followed by August 11 high at $94.32.
Alternatively, bears could demolish the upside bias if it drops below Thursday’s low at $82.14 will rag the asset towards the round-level support at $80.00. A breach of the latter will unleash bears for more downside towards July 6 high at $76.40.
WTI hourly chart
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