Bulls fight 100, 200-HMA above $ 80.00
- WTI extends its rebound from a weeklong low and refreshes its intraday high of late.
- RSI overbought conditions, key moving averages challenge buyers.
- Bears have a bumpy road to entry, 61.8% Fibonacci retracement testing pullback.
WTI crude oil takes bids around $ 80.40, up 0.77% during the day, ahead of Tuesday’s European session.
In doing so, buyers of black gold are attacking a convergence of 100-HMA and 200-HMA while extending the rebound from the one-week low set the day before.
Given RSI overbought conditions challenging the bullish momentum around key moving averages, around $ 80.40 at the latest, WTI should see a pullback towards the Fibonacci retracement level (Fibo.) Of 61.8% of the increase from November 04 to 09, nearly $ 79.90.
Next, an ascending trendline connecting the weekly lows, near $ 79.75, will precede the horizontal area comprising several lows marked since November 04, near $ 78.30, to challenge the oil bears.
On the other hand, the 50% Fibo. about $ 80.60 and the round figure of $ 81.00 restricts the short-term advances of WTI’s prices.
In a case where commodity bulls remain dominant above $ 81.00, $ 82.20 will probe the advances targeting the monthly high near $ 83.60.
To sum up, the bulls in WTI appear to have tired, but the overall uptrend remains intact.
WTI: hourly chart
Trend: expected withdrawal