WTI Price Analysis: Bulls struggle around 200-EMA, $92.00 a critical hurdle

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WTI Price Analysis: Bulls struggle around 200-EMA, $92.00 a critical hurdle

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• The 200-period EMA is acting as a major barricade for the counter.
• A bullish flag formation adds to the upside filters.
• The RSI (14) is attempting a break above 60.00, which will strengthen the oil bulls.

The pair currently trades last at 91.3.

The previous day high was 91.79 while the previous day low was 87.19. The daily 38.2% Fib levels comes at 90.03, expected to provide support. Similarly, the daily 61.8% fib level is at 88.95, expected to provide support.

West Texas Intermediate (WTI), futures on NYMEX, is displaying back and forth moves in a narrow range of $90.68-91.34 in the early Tokyo session. The black gold has turned sideways after delivering a juggernaut rally from a low near $87.00 on Wednesday. The north-side perpendicular move remained shy of $92.00.

A Bullish Flag formation on an hourly scale signals a continuation of bullish momentum after a rangebound phase. Usually, a consolidation phase denotes intensive buying interest from the market participants, which prefer to enter an auction after the establishment of the trend.

Bulls are struggling to cross the mighty 200-period Exponential Moving Average (EMA) at $91.40, however, the upside momentum assures a break sooner. The 50-EMA at $90.18 has started advancing higher, which warrants short-term optimism.

Meanwhile, the Relative Strength Index (RSI) is struggling to cross 60.00. A break of the same will unleash the oil bulls for upside.

A decisive move above Tuesday’s high at 92.00 will drive the asset towards the round-level resistance at 95.00, followed by an August 1 high at $97.57.

Alternatively, oil prices can lose momentum if it drops below Wednesday’s low at $88.46. An occurrence of the same will drag the asset towards the August 5 low at $86.40. A slippage below $86.40 will open doors for more downside towards the 9 November 2021 high at $83.34.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 91.3 at the time of writing. Pair opened at 91.01 and is trading with a change of 0.32 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 94.18, 50 SMA 102.96, 100 SMA @ 104.18 and 200 SMA @ 94.32.

The previous day high was 91.79 while the previous day low was 87.19. The daily 38.2% Fib levels comes at 90.03, expected to provide support. Similarly, the daily 61.8% fib level is at 88.95, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 88.2, 85.39, 83.6
• Pivot resistance is noted at 92.81, 94.61, 97.42

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