- WTI is looking to extend earnings to $ 76 amid better market sentiment.
- US oil needs acceptance above $ 76.50 to unleash the further rise.
- The daily RSI looks to the upside while above the midline, keeping the WTI bulls hopeful.
WTI (NYMEX futures) is posting modest gains during the European session on Thursday, flirting with the $ 75 level as the bulls await a strong catalyst for the next big move.
The return of risk appetite, following encouraging news from Evergrande in China, the decline in US Treasury yields and aversion to a possible US government shutdown, is underpinning the higher-yielding WTI.
The renewed rise in the price of US oil keeps buyers motivated to regain the $ 76 level, as seen on their daily chart.
After a brief pullback from nearly three-year highs of $ 76.50 on Tuesday, the WTI bulls have regained control, but in a cautious position amid relentless surge in US Treasury yields, which generally dampen demand for oil. as a higher-yielding alternative asset.
Furthermore, global economic concerns have resurfaced again, amid power outages in China and fuel shortages in the euro zone causing manufacturing shutdowns, limiting upward momentum for oil.
However, the bullish bias remains intact, as WTI prices are set to break through critical horizontal resistance around $ 76.50.
The 14-day RSI continues to point higher, well above the midline, allowing room for additional gains.
Furthermore, the 50-day moving average is close to breaking above the 100 SMA from below, pointing to a possible confirmation of a bullish crossover.
WTI gráfico diary
On the downside, Wednesday’s low of $ 73.56 holds the key, below which a sharp correction towards the bullish-sloping 21 SMA at $ 71.35 is still unavoidable.
Before that, the bulls could find some respite at the September 24 low of $ 72.72.
WTI additional levels