- WTI crude oil remains sidelined after posting a price-reversal suggesting candlestick the previous day.
- U-turn from 10-day EMA, firmer RSI (14) also keeps WTI buyers hopeful.
- 200-day EMA, easing bullish bias of MACD prods upside expectations.
- Double tops around $83.30-40 appear a tough nut to crack for Oil bulls to retake control.
WTI crude oil rises to $81.10 early Wednesday, after a sluggish performance on Tuesday.
In doing so, the back gold justifies the previous day’s Doji candlestick which generally suggests a reversal of the previous trend. Herein, it suggests the reversal of the previous week’s pullback from multi-day-old horizontal resistance.
Not only the Doji candlestick but a U-turn from the 10-day Exponential Moving Average (EMA), around $80.60 by the press time, also keeps the Oil buyers hopeful, especially amid a firmer but not overbought RSI (14) line.
However, the 200-day EMA challenges the WTI bulls around $81.70, together with the receding bullish bias of the MACD signals.
Following that, a horizontal area comprising tops marked since December 2022, around $83.30-40, becomes crucial to watch for the Oil buyers as a break that could push back the bearish bias about the commodity.
Alternatively, a downside break of the 10-day EMA level of around $80.60 needs validation from the $80.00 psychological magnet, as well as the previous weekly low of around $79.35, to convince the Oil bears.
Even so, multiple stops around $77.50 may challenge the WTI crude oil bears afterward.
WTI crude oil: Daily chart
Trend: Further recovery expected
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