WTI Price Analysis: Oil extends recovery from multi-month low towards $72.00

WTI picks up bids to extend recovery from December 2021.
RSI rebound from oversold territory favors corrective bounce off the WTI Crude Oil price.
Bearish MACD signals, multiple hurdles towards the north hint at limited upside room.

WTI crude oil prints a three-day uptrend as it extends a corrective bounce from the lowest levels since December 2021 to $71.70 heading into Monday’s European session.

In doing so, the black gold benefits from RSI (14) line’s rebound from the oversold territory.

However, the bearish MACD signals and a slew of upside hurdles challenge the energy buyers.

Among them, the 10-DMA level of around $73.00 acts as an immediate resistance for the WTI bulls to tackle.

Following that, a downward-sloping trend line from mid-April and the 21-DMA, respectively near $73.90 and $76.85, could restrict further advances in the commodity price.

In a case where the energy benchmark remains firmer past 21-DMA, the support-turned-resistance line from December 2022, close to $77.40 by the press time, can act as the last defense of the WTI bears.

Meanwhile, the 23.6% Fibonacci retracement level of the commodity’s downside from November 2022 to the last week’s bottom, near $71.00, limits short-term declines of the WTI crude oil price.

Should the quote remains weak past $71.00, the $70.00 round figure and $68.00 may rest the Oil bears before directing them to the latest multi-month low of around $64.30.

Overall, WTI crude oil is likely to extend the latest recovery but the road towards the north appears long and bumpy.