WTI Price Analysis: Oil trades near expanding channel hurdle

• The US oil prices trade in an expanding channel. 
• With daily RSI bullish, a breakout would expose August highs.

The West Texas Intermediate (WTI) crude, a North American oil benchmark, has carved out an expanding channel over the past two months. 

Oil is currently trading in the red near $41.73 per barrel. The current prices are just short of the channel resistance at $42.10. 

A close above that level would confirm a bullish breakout, validating the above-50 or bullish reading on the 14-day Relative Strength Index (RSI) and opening the doors to the August high of $43.78. 

The bulls have failed multiple times in the past few days to force a bullish close. Another rejection could cause some buyers to exit the market, leading to a price pullback to $40.06 (Nov. 13 low). 

Daily chart

Trend: Neutral

Technical levels