Dribble below $110.00 even as bulls eye monthly resistance

  • WTI is advancing during the four-day uptrend and closing in on the key near-term hurdle.
  • The RSI conditions suggest difficulties for the buyers to break through the resistance line.
  • 61.8% Fibonacci retracement level, weekly support line limits short-term declines.

WTI crude oil prices are maintaining the rallying moves of the previous week, although they were pushed aside to around $109.50 during Monday’s Asia.

In doing so, black gold remains above a week-old ascending support line, as well as the 50-SMA. The same goes for firmer, non-overbought RSI conditions to keep buyers hopeful.

However, an ascending trend line from April 18 around $111.00 at press time joins the rush of RSI lines into overbought territory to test Energy prices.

If the quote breaks above $111.00, the 78.6% Fibonacci retracement (Fibo.) of the March-April downturn near $111.60 could act as an additional upside filter before directing the bulls in the WTI towards late March high of $115.85.

On the contrary, pullback moves may remain elusive until they stay above the 61.8% Fibo near $107.00, quickly followed by the aforementioned support line surrounding $106.10.

Even if the quote falls below $106.10, the 50-SMA level of $105.15 will test WTI sellers before steering them towards the psychological magnet of $100.00.

WTI: four-hour chart

Trend: limited increase expected

Eleanor C. William