WTI Price Analysis: Finds bids at the confluence of critical support and trendline at $109.50

content provided with permission by FXStreet

  • The oil prices have displayed recovery signs after hitting the critical support and trendline confluence.
  • A golden cross has been displayed by the 50- and 200-period EMAs, which adds to the upside filters.
  • Should the RSI (14) recaptures the bullish range of 60.00-80.00, a fresh impulsive wave may trigger.

West Texas Intermediate (WTI), futures on NYMEX, has displayed a firmer rebound after hitting a low of $109.48 in the late Asian session. The black gold has remained in the grip of bulls for the past week after sensing a responsive buying action from the previous week’s low at $101.17.

The oil prices have displayed signs of recovery after kissing the confluence area of the trendline and the critical support at $109.53. To be informed, the upward sloping trendline is placed from Friday’s low at $102.79.

A golden cross, represented by the 50- and 200-period Exponential Moving Averages (EMAs) at $108.76, has strengthened the oil bulls. Also, the golden cross firms a bullish reversal in an asset.

The Relative Strength Index (RSI) (14) has corrected mildly after remaining in the bullish range of 60.00-80.00. Investors will see a fresh leg of an upside move if the RSI (14) will recapture the above-mentioned bullish range.

A decisive move above Wednesday’s high at $111.18 will drive the asset towards June 14 low at 114.30, followed by June 17 high at $116.30.

On the flip side, bulls could lose control if the asset drops below Tuesday’s low at $108.55. An occurrence of the same will drag the asset towards the round-levels support at $105.00. A breach of the round-level support will unleash bears for more downside towards Friday’s low at $102.79.

WTI hourly chart