WTI Price Analysis: Oil stays defensive beyond resistance-turned-support surrounding $83.50
- WTI crude oil lacks upside momentum after refreshing yearly high the previous day.
- Overbought RSI, seven-week-old rising resistance line challenge Oil buyers.
- 10-DMA, wedge formation prod energy sellers as markets await US inflation.
WTI crude oil treads water around $83.80 amid cautious markets heading into Thursday’s European session. In doing so, the black gold also justifies the overbought RSI (14) line as energy traders await the key US Consumer Price Index (CPI) data for July.
It’s worth noting that the energy benchmark rose to the highest level since late November 2022 the previous day after crossing an eight-month-old horizontal resistance, now immediate support around $83.50.
However, the commodity’s failure to cross an upward-sloping resistance line from June 21 joined the overbought RSI and the market’s cautious mood ahead of the US data to restrict the further upside.
That said, the MACD signals also fade bullish bias and suggest a pullback in the WTI crude oil price. Though, a clear downside break of the previous resistance surrounding $83.50 needs to gain back-up of the firmer US inflation data to recall the sellers.
Even so, the 10-DMA and an ascending support line from June 28, close to $81.90 and $80.65 in that order, will challenge the WTI bears afterward.
In a case where the black gold drops beneath $80.65, it confirms the rising wedge bearish chart formation suggesting a theoretical target of around $63.50.
On the flip side, the stated wedge’s top line restricts the WTI crude oil’s immediate upside near $84.60.
Following that, the $90.00 round figure and the November 2022 high of near $92.95 will be in the spotlight.
WTI crude oil: Daily chart
Trend: Pullback expected