WTI Price Analysis: Hovers above descending triangle formation, needs more filters

• The oil prices seek more filters despite the breakout of an ascending triangle.
• Short-term to long-term EMAs are overlapping each other which indicates a consolidative move ahead.
• A responsive buying activity at descending trendline signals a short-term cushion in the asset.

West Texas Intermediate (WTI), futures on NYMEX, has witnessed a decent rebound after slipping near the round level support at $95.00. The oil prices have attracted bids after a sheer downside from April 18 high at $109.13. Considering the price action, some back and forth wild moves could be displayed by the asset going forward.

The asset is auctioning above the descending triangle chart pattern whose descending trendline placed from March’s high at $126.51, followed by March 24 high at $115.87. The horizontal support is plotted from March’s low at $92.37. The asset is still finding support despite giving a breakout of the descending triangle formation.

The 20- and 200-period Exponential Moving Averages (EMAs) at $100.12 and $101.36 respectively are overlapping each other, which signals volatility contraction and lackluster performance going forward.

Meanwhile, the Relative Strength Index (RSI) (14) has bounced after slipping below 40.00. This indicates a responsive buying activity as investors are considering it a value bet.

A decisive breach above the 200-EMA at $101.36 will drive the asset towards April 13 high at $104.02, followed by Monday’s high at $109.13.

On the flip side, the asset may lose strength if it drops below April 24 low at $95.07. This will drag oil prices to March 15 low and February 25 low at $92.37 and $89.59 respectively.

WTI four-hour chart