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

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

  • 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

fxsoriignal

WTI: Additional levels

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.