WTI Price Analysis: Oil buyers need sustained break of $81.00 to keep the reins
- WTI crude oil buyers take a breather after posting the biggest daily jump in 11 months.
- Seven-week-old resistance line, overbought RSI (14) challenge Oil buyers.
- Oil bears remain off the table beyond $70.90 while one-week-long ascending trend line restricts immediate downside.
WTI crude oil remains sidelined near $80.30 as commodity traders look for fresh impulse to extend the biggest daily jump in 11 months during early Tuesday. In doing so, the black gold seesaws around a seven-week-long resistance line amid an overbought RSI (14).
Not only the $81.00 trend line hurdle and the overbought RSI (14) but the receding bullish bias of the MACD and multiple tops marked during January 2023 around $82.70 also challenge the WTI buyers.
In a case where the energy benchmark rises past $82.70, the odds of witnessing a run-up toward December 2022 high near $83.30 can act as the last defense of the Oil bears.
On the flip side, pullback moves can aim for the $80.00 round figure and the late Monday’s swing low around $79.00.
However, an upward-sloping support line from March 24 and the 200-SMA, respectively near $76.15 and $74.35, could challenge the Oil bears afterward.
Should the WTI bears keep the reins past $74.35, a fortnight-long support line near $70.80 and the $70.00 psychological magnet can lure the Oil sellers.
Overall, WTI crude oil buyers appear to run out of steam but the bears have a long way to travel before retaking control.
WTI: Four-hour chart
Trend: Limited upside expected