WTI is on the rounds near $64.50 ahead of European markets open on Tuesday. The black gold has been on an upward trajectory so far during 2019 but overbought RSI and $64.75/80 resistance-region challenges buyers at the moment.
Despite trading near the highest levels in more than five-months, WTI still needs to provide a daily closing beyond $64.75/80 horizontal-area, comprising August 2018 lows, in order to escalate the up-moves toward $65.80 and $67.20. Though, the overbought conditions of 14-day relative strength index (RSI) signal pullback of the energy benchmark.
Should prices rally beyond $67.20, October 29, 2018 high near $67.85 and $70.00 are likely following numbers to flash on the Bulls’ radar.
In a case, the quote fails to surpass $64.80 on a daily closing basis, 61.8% Fibonacci retracement of its October to December 2018 downturn, at $63.70, followed by $62.80 may act as adjacent supports.
However, 200-day simple moving average (SMA) level of $61.30 and an upward sloping trend-line stretched since December 2018, at $59.50, could question the sellers past-$62.80.
WTI daily chart
Trend: Pullback expected
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