- WTI stays positive while flirting with February 2020 top.
- Overbought RSI conditions probe bullish chart formation around nearby resistance.
- 21-day SMA, channel support close adjacent doors for seller’s entry.
- Headlines from OPEC meeting will be the key to follow.
Having recently bounced off $53.96, WTI teases the intraday high around $54.25, also the highest since February 2020, while heading into Tuesday’s European session. In doing so, the oil benchmark justifies the previous day’s recovery moves from 21-day SMA and an ascending trend channel’s support ranging from November 2020.
Although bulls are in full mood, overbought RSI conditions may trigger pullback around February 2020 peak surrounding $54.70.
In a case where the oil buyers keep dominating past-$54.70, the $55.00 round-figure may offer an intermediate halt to the rally targeting the mid-January 2020 lows near $57.40.
On the flip side, a daily closing below the 21-day SMA level of $52.43 needs validation from the stated channel support, currently around $52.00, to convince the WTI sellers.
If at all the anticipated pullback extends below $52.00, December 2020 tops near $49.40 should return to the charts. Though, the $50.00 threshold can offer an intermediate halt during the fall.
Overall, crude oil prices remain strong and eye early 2020 levels. However, today’s OPEC meeting may trigger the much-awaited pullback in case of negative surprises.
Why is Brent crude more expensive than WTI?
WTI in 2021 highs, looks to $60.00
Can I buy WTI crude? Prices of the WTI extended the upside on Monday amidst rising open interest and volume, which is supportive of the continuation of the uptrend, at least in the very near-term. That said, the West Texas Intermediate keeps the longer-term target at the key $60.00 mark per barrel for the time being.
