WTI Price Analysis: Loads gains post a Triangle breakout, US EIA oil data eyed
- Oil price is oscillating near its two-week high around $73.90.
- The USD Index has tumbled to near 102.40 as investors are split about Fed’s interest rate outlook.
- An upside break of the triangle chart pattern resulted in wider ticks and heavy volume.
West Texas Intermediate (WTI), futures on NYMEX, is hovering near its two-week high around $73.90 in the early Asian session. The oil price has shown a solid run in the past two trading sessions amid weakness in the US Dollar and expectations of more sanctions on Russia.
The US Dollar Index (DXY) has tumbled to near 102.40 as investors are split about the interest rate outlook of the Federal Reserve (Fed). As per the CME Fedwatch tool, more than 50% of investors are favoring a steady monetary policy by the Fed for its May meeting.
The execution of bases for nuclear weapons in Belarus by Russia has mounted global tensions. The street is discussing that the decision from Russian President Vladimir Putin will attract more sanctions from G7 countries, which might hinder the oil supply further.
On Wednesday, investors’ entire focus will remain on oil inventories data, which will be reported by the United States Energy Information Administration (EIA). As per the consensus, the US EIA will report a small build-up in oil stockpiles by 0.187 million barrels for the week ending March 24.
WTI has witnessed a sharp upside after a breakout of the Symmetrical Triangle chart pattern formed on an hourly scale. An upside break of the triangle chart pattern resulted in wider ticks and heavy volume. The 20-period Exponential Moving Average (EMA) at $73.30 is providing support to the oil bulls.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that upside momentum is already active.
Going forward, a decisive move above the immediate resistance of $74.00 will drive the oil price towards the horizontal resistance plotted from March 03 high at $76.00. A break above the latter would expose the asset to March 02 high at $78.65.
On the flip side, a slippage below March 23 high at $71.39 would drag the asset toward March 17 high at $69.83 followed by March 24 low at $66.88.