- WTI is heading higher amid a descending triangle on the 1 hour chart.
- Optimism over vaccines eases concerns about economic growth and oil demand.
- All attention is focused on the OPEC + meeting and the weekly data for US crude stocks.
The WTI (futures on NYMEX) has caught new purchases in the last hour as it seeks to regain the $ 42 level amid expectations that OPEC and its allies (OPEC +) will delay the increase in oil production from three to six months when they meet later on Tuesday.
In addition, optimism about faster economic growth and, in turn, better prospects for oil demand, due to the encouraging news about the covid vaccine, also continue to support black gold prices.
From a short-term technical perspective, WTI is consolidating after Monday’s move, creating a descending triangle pattern on the hourly chart.
The pattern will validate on a close above the resistance of the downtrend line, currently at $ 41.83.
Acceptance above that level could point to a test of the previous day’s high of $ 42.34, with attention focused on the round $ 43 level.
The RSI on the 1 hour chart is advancing above the midline, allowing for further rallies.
On the other hand, a break of the support at $ 41.36 will invalidate the pattern, opening the doors to the upward sloping 50 hourly moving average at $ 41.23.
WTI 1 hour chart
WTI technical levels
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