WTI bulls remain dominant, refreshing the seven-year peak during early Monday. That said, the black gold seesaws around $84.15, up 0.53% intraday, after renewing the multi-year peak to $84.38 before a few minutes to the European session’s start.

It should be noted, however, that the further upside remains doubtful as the RSI line pokes overbought region as the oil prices flirt with an ascending resistance line from March, near $84.45-50 at the press time.

Also favoring the black gold were headlines concerning China’s struggling real-estate firm Evergrande. Following the firm’s ability to pay $83.5 million in interest on a U.S. dollar bond, the property company announced it have restarted 10 projects in six cities including Shenzhen.On the contrary, the recent covid conditions in China and Russia have been grim and challenge the risk-on mood, as well as the commodities. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

n a case where WTI buyers manage to flash a daily closing past $84.50, the early 2010 levels near $87.50 may probe the run-up targeting the $90.00 psychological magnet.

During the quote’s pullback moves, a confluence of 10-DMA and an ascending trend line from late September, near $82.10, will be the key to watch.

Should oil’s profit-booking extends below $82.10, also conquer the $82.00 threshold, the $80.00 round figure and July’s high near $76.40 will be in focus. A two-month-old support line, near $79.80 by the press time, keeps WTI bulls directed towards November 2012 lows near $84.10. However, overbought RSI conditions and an ascending resistance line from March will challenge the oil buyers around $84.50 afterward.

West Texas Oil At Record Highs

Oct 25 2021