Stays on the bumpy road to $80.00
- WTI remains firmer around intraday top, snaps two-day pullback from mid-November highs.
- Short-term support break, bearish MACD signals challenge buyers.
- 50-SMA, support line of immediate bearish channel tests bears.
WTI crude oil prices gain for the first time in three days, up 0.50% around $78.35 heading into Tuesday’s European session.
The black gold stays inside a bearish trend channel formation, portrayed since last Thursday while remaining above the key moving averages.
Also challenging the WTI traders is the bearish MACD signal and the previous day’s downside break of an ascending support line from December 20, now resistance around $79.40.
That said, the commodity prices are likely to improve in the short-term with eyes on the upper line of the stated channel, near $78.85, a break of which will direct WTI prices towards the previous support line near $79.40.
During the quote’s upside past $79.40, the monthly top surrounding the $80.00 threshold, also the highest level since November 16, will be crucial to watch.
Meanwhile, a convergence of the nearby channel’s support line and 50-SMA limits short-term declines of the WTI near $77.20.
Following that, the 100-SMA and 200-SMA levels, respectively around $74.90 and $72.80, will challenge WTI crude oil sellers.
WTI: Four-hour chart
Trend: Further upside expected