WTI Price Analysis: Renews seven-year high above $84.00, further upside needs validation
- WTI rises to the fresh high since October 2014, sidelined of late.
- Ascending trend line from March, overbought RSI challenge the bulls.
- Convergence of monthly support line, 10-DMA restricts immediate downside.
WTI bulls remain dominant, refreshing the seven-year peak during early Monday. That said, the black gold seesaws around $84.15, up 0.53% intraday, after renewing the multi-year peak to $84.38 before a few minutes to the European session’s start.
It should be noted, however, that the further upside remains doubtful as the RSI line pokes overbought region as the oil prices flirt with an ascending resistance line from March, near $84.45-50 at the press time.
In a case where WTI buyers manage to flash a daily closing past $84.50, the early 2010 levels near $87.50 may probe the run-up targeting the $90.00 psychological magnet.
During the quote’s pullback moves, a confluence of 10-DMA and an ascending trend line from late September, near $82.10, will be the key to watch.
Should oil’s profit-booking extends below $82.10, also conquer the $82.00 threshold, the $80.00 round figure and July’s high near $76.40 will be in focus.
WTI: Daily chart
Trend: Pullback expected