WTI holds onto the previous day’s recovery moves, grinds higher around daily top.

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• WTI holds onto the previous day’s recovery moves, grinds higher around daily top.
• Successful break of 100-SMA, bullish MACD divergence keep buyers hopeful.
• Two-month-old resistance line, 200-SMA restrict immediate upside.
• 12-day-old support line adds to the downside filters.

The pair currently trades last at 91.06.

The previous day high was 90.98 while the previous day low was 86.26. The daily 38.2% Fib levels comes at 89.18, expected to provide support. Similarly, the daily 61.8% fib level is at 88.06, expected to provide support.

WTI crude oil buyers defend the $91.00 breakout heading into Tuesday’s European session. In doing so, the black gold justifies the previous day’s upside break of the 100-SMA, as well as the bullish MACD signals.

Additionally, the lower high on prices joins the higher high on the RSI (14) to portray the hidden bullish divergence of the commodity.

As a result, the quote aims for the downward sloping resistance line from late July, around $92.30.

However, the energy benchmark’s further upside hinges on how well the buyers can cross the 200-SMA hurdle surrounding $93.65.

Following that, a slow grind towards the monthly high of $95.90 and then to the $100.00 threshold can’t be ruled out.

On the flip side, pullback moves remain elusive until the quote remains above the descending resistance line from July 29, around $89.10. That said, the 100-SMA level near $90.45 restricts the immediate downside of the black gold.

It should be noted that the WTI crude oil’s weakness past $89.10 could make it vulnerable to refresh the six-month low, which in turn highlights the two-week-old support line, at $84.70 by the press time.

Trend: Limited upside expected

Technical Levels: Supports and Resistances

XTIUSD currently trading at 91.06 at the time of writing. Pair opened at 90.48 and is trading with a change of 0.64% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 91.32, 50 SMA 98.33, 100 SMA @ 102.85 and 200 SMA @ 94.68.

The previous day high was 90.98 while the previous day low was 86.26. The daily 38.2% Fib levels comes at 89.18, expected to provide support. Similarly, the daily 61.8% fib level is at 88.06, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 87.5, 84.51, 82.77
• Pivot resistance is noted at 92.23, 93.97, 96.95

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