- September 18, 2020
- Posted by: Analysis Team
- Category: Forex News
- WTI holds on to the recent upside while around 50-DMA.
- A daily close above 50-DMA at $41.25 needed to extend the rally.
- RSI remains bullish, $40.75 is critical support.
WTI (futures on Nymex) consolidates the three-winning streak above $41 mark on Friday, as the bulls await a fresh catalyst for the next push higher.
At the momentum, the price has formed a Doji candlestick on the daily chart, suggesting bullish exhaustion after the solid recovery from three-month lows of $36.43 to two-week highs of $41.75.
The bulls need a daily closing above the 50-day Simple Moving Average (DMA) at $41.25 to extend the recovery momentum. The next upside target is aligned at $42.07, the September 4 high.
The 14-day Relative Strength Index (RSI), currently at 54.60, trades flat but remains in the bullish region. Therefore, the additional upside cannot be ruled out in the near-term.
Meanwhile, $40.75 is the level to beat for the bears. The level is the confluence of the downward-sloping 21 and 200-DMAs.
Selling pressure will likely intensify below the latter, which could trigger a fresh sell-off towards the bullish 100-DMA at $38.24.
WTI: DAILY CHART
WTI: Additional levels