- 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.
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.
WTI hourly chart