- WTI maintained its rally from the previous day and moved higher near the daily top.
- managed to break above 100-SMA, bullish MACD divergence keeps buyers hopeful.
- Two-month-old resistance line, 200-SMA limits immediate gains.
- Support lines from 12 days ago were added to the descending filter.
WTI crude buyers defend $91.00 heading into Tuesday’s European session breakthrough. In doing so, Black Gold justified the previous day’s upward break above the 100-SMA along with a bullish signal from the MACD.
Additionally, the lower price highs, along with the higher RSI (14) highs, paint a hidden bullish divergence for the commodity.
Therefore, this quote is targeting a downward sloping resistance line from late July at around $92.30.
However, further upside for the energy benchmark depends on how far buyers can cross the 200 SMA mark near $93.65. $95.90 cannot be ruled out and then the $100.00 threshold is reached.
On the other hand, the pullback action remains elusive until the quotes remain unchanged above the descending resistance line of July 29, About $89.10. That said, the 100 SMA level near $90.45 limits the immediate downside for black gold.
It should be noted that a break in WTI crude oil below $89.10 could make it vulnerable to a 6-month low This, in turn, highlights a two-week support line at $84.70 at press time.
WTI: Four Hour Chart
Unless otherwise expressly mentioned in the text of the article, at the time of writing, the author is in any stock mentioned No positions are in this article and have no business relationship with any of the companies mentioned. Other than from FXStreet, the author did not receive any compensation for writing this article.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness or suitability of this information. FXStreet and the author shall not be liable for any errors, omissions or any loss, injury or damage arising out of this information and its display or use. Errors and omissions excluded.
The author and FXStreet are not registered investment advisors and nothing in this article is investment advice.