- WTI price regains poise after Friday’s crash.
- Declining supplies from Libya offers much-needed boost to the WTI bulls.
- The WTI regains the 50-day SMA, with a possible bullish flag formation on the daily chart.
The WTI (futures in NYMEX) registers gains of almost 1% so far this Monday, starting the first trading day of 2022 with a positive tone.
European equities have opened higher, adding to market optimism and in turn driving the higher-yielding oil price. Meanwhile, Libya’s declining oil supply also supports the renewed rise in the price of black gold.
At the time of writing, US oil is struggling near the $ 76 level, trading near the daily highs of $ 76.11. WTI hit new five-week highs at $ 77.25 last Thursday before ending the year at $ 75.26 on Friday.
Technically, WTI is charting a bullish flag formation on the daily chart, following the recent consolidation that followed the December 20 rally.
A daily close above the downtrend line resistance at $ 76.84 will validate a bullish flag, opening the doors for a move towards the $ 80 level.
Before that target, the bulls could face stiff resistance around the November 26 highs of $ 78.10.
The 14-day RSI is pointing higher above the midline, allowing room for additional gains.
Oil buyers remain hopeful as the WTI remains above the downtrend 50-day moving average at $ 75.83.
A sustained breakout of the latter level will expose a decline towards trend line support at $ 74.66. At that level is also the 100-day SMA, which makes it a powerful hurdle.
WTI gráfico diary
WTI additional levels
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