Wti Price Analysis: Consolidation With A Mild Positive Bias Indicates An Upside To Near $110.00

Wti Price Analysis: Consolidation With A Mild Positive Bias Indicates An Upside To Near $110.00

  • Trade Ideas
  • Commodities
  • 2022, 12 May

Brief:

  • The black gold is consolidating in a wider range of $92.77-110.33 with a mild positive bias.
  • Oil prices are firmer above the 20-EMA at $103.14.
  • The RSI (14) has rebounded sharply from the bearish range of 20.00-40.00.

West Texas Intermediate (WTI), futures on NYMEX, is displaying back and forth moves in a narrow range of $109.98-104.36 in the Asian session. On a broader note, the oil prices are driving higher sharply after testing below the psychological support of $100.00 that triggered the responsive buying action.

The black gold is oscillating in a wider range of $92.77-110.33 with a mild positive bias on a four-hour scale. The oil prices have witnessed a firmer rebound after hitting the low of $97.21 on Tuesday, which has directed the asset towards the upper slight bullish horizontal trendline placed from March 30 high at $107.71.

The black gold has overstepped the 20-period Exponential Moving Average (EMA) at $103.14, which has strengthened the bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has rebounded sharply from the bearish range of 20.00-40.00 but is likely to find a barricade around 60.00.

Should the asset oversteps Wednesday’s high at $103.05, bulls may drive the asset towards the April 29 high at $107.07, followed by the psychological resistance at $110.00.

On the flip side, bulls could lose momentum if the asset drops below the psychological mark of $100.00, which will send the oil prices to near Tuesday’s low at $97.21. A breach of the latter will drag the fossil fuel prices towards April 25 low at $95.07.

Suggestion:

Buy above 102.60 for 106.40 and 108.00

Else

Sell below 102.60 for 101.30 and 99.50

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