Seeks to retest seven-year highs above the $ 78 level

• WTI consolidates near highs, at levels not seen in 2014, as OPEC + maintains the increase in oil production.
• US oil breaks a descending triangle on the 1 hour chart.
• The RSI remains comfortable above the midline.

WTI (NYMEX futures) is posting modest gains, consolidating Monday’s rally to the highest levels since 2014 at $ 78.20 after OPEC and its allies decided to keep oil production rising at 400,000 barrels per day ( bpd).

So far Tuesday, the WTI bulls are taking a breather amid resurgent demand for the US dollar overall as risk sentiment continues to be affected by concerns from the Chinese housing market and inflation concerns.

The return of appetite for riskier assets, following encouraging news Evergrande in China, the decline in US Treasury yields and aversion to a possible US government shutdown, is driving the higher-yielding WTI.

From a short-term technical perspective, the WTI consolidation mode could pave the way for a further move to the upside, as the bulls look to retest the multi-year highs above $ 78.

Black gold has broken out of a descending triangle on the 1-hour chart following a sustained break above the downtrend line resistance at $ 77.66.

The RSI continues within the bullish territory, well above the center line, allowing room for more gains.

Before hitting yearly highs, the WTI bulls need to find acceptance above the 21-hour moving average at $ 77.70.

WTI 1 hour chart

However, if the price breaks the triangle support at $ 77.25, then the bullish breakout would be invalidated, with a probable corrective drop on the table.

The WTI price could drop to test the 50 hourly SMA at $ 76.28.

WTI additional levels