WTI Price Analysis: Eyes $40 mark amid bullish crossover, ahead of EIA

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  • WTI breaks higher amid favorable technical set up on hourly chart.
  • US oil heads towards $40 mark despite overbought RSI.
  • 21-HMA cuts the 200-HMA from below, points to more gains.

WTI (futures on Nymex) extends its steady rise into the European trading this Wednesday, as the bulls gear up for a test of the $40 mark.

However, a temporary pullback towards the 21-hourly Simple Moving Average (HMA) at $38.80 cannot be ruled out in the coming hours, as the hourly Relative Strength Index (RSI) trends in the overbought territory at 74.05.

A break below the latter could see a test of the bearish 200-HMA at $38.39.

Overall, the path of least resistance appears to the upside after the price charted a symmetrical triangle breakout on the hourly chart in the US last session.

With the further upside bolstered by the bullish crossover of the 50-HMA above the horizontal 100-HMA in early Asia. The latest leg higher witnessed follow-through buying interest, allowing for more gains, as the 21-HMA pierced through the downward-sloping 200-HMA from below.

The pattern target is marked at $40.53. Ahead of that level, the psychological 40 barrier will challenge the bulls’ commitment. All eyes now remain on the EIA crude stocks change data for near-term trading opportunities.

WTI: Hourly chart

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WTI: Additional levels

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