WTI Price Analysis: Mildly offered around $118.00, weekly support defends buyers

• WTI grinds lower amid sluggish RSI, MACD, reverses previous day’s gains.
• 200-HMA adds to the downside filters, ascending trend line from May-end guards immediate upside.

WTI crude oil prices pare the previous day’s gains, around $118.00 as sluggish oscillators fail to extend the recovery moves even as the short-term support limits immediate downside. That said, the black gold remains indecisive heading into Wednesday’s European session.

It’s worth noting that the market’s indecision, as well as the recent US dollar rebound and recession fears, may weigh on the black gold prices.

However, one-week-old horizontal support of around $116.35-45 can challenge the energy bears. Also acting as a downside filter is the 200-HMA level of $115.35.

In a case where the WTI prices drop below $115.35, the odds of witnessing a slump towards the monthly low near $110.00 can’t be ruled out.

Meanwhile, recovery moves need validation from an upward sloping trend line from May 31, at $119.50 by the press time.

Following that, the $120.00 round figures could offer an intermediate halt during the run-up to refresh the yearly high, currently around $126.50.

WTI: Hourly chart

Trend: Bullish