- WTI is extending its week-long consolidation pattern.
- A range breakout could bring in additional buying pressure, yielding a move to resistance above $29.
The US oil prices are lacking a clear directional bias for the sixth straight day.
West Texas Intermediate’s front-month contract is sidelined near $25.35 at press time. Prices have been restricted to a range of $26.74 to $22.58 since last Wednesday.
A daily close above the top end of the range would imply a continuation of the rally from the April 28 low of $10.07 and open the doors to resistance at $29.13 (April 3 high). Alternatively, a move below the lower end of the range at $22.58 would suggest the recovery rally has ended and the bears have regained control. In that case, a fresh sell-off toward $10 could be seen.
Note that the overall bias would turn bullish if and when the black gold finds acceptance above the resistance of the trendline falling from Jan. 8 and Feb. 20 highs. At press time, that trendline hurdle is located at $32.80.
Daily chart
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Trend: Neutral
Technical levels
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