Prices of the WTI edged higher for the second session in a row on Friday. The rebound, however, was on the back of shrinking open interest and volume, hinting at the idea that further upside could lack sustainability in the very near term at least. That said, the WTI could attempt another challenge of the multi-month lows at $81.20 (September 8).

The black gold has attempted a bullish reversal after refreshing its six-month low at $80.94. The asset is picking significant bids as investors are considering the oil prices a ‘value bet’ after a meaningful decline from the all-time highs above 125.00.

On an hourly scale, oil bulls have stepped into the prior balanced profile (placed in an $85.77-90.14 range), which resulted in a bearish imbalance earlier. Investors should be aware of the fact that an entry into the prior balanced auction bolsters the odds of a bullish reversal.

The 20-and 50-period Exponential Moving Averages (EMAs) have delivered a bullish crossover at $83.66, which indicates more upside ahead.

Also, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which dictates that upside momentum has been triggered.

A decisive break above Friday’s high at $86.78 will send the major towards the round-level resistance at $90.00, followed by August 11 high at $94.32.

Alternatively, bears could demolish the upside bias if it drops below Thursday’s low at $82.14 will rag the asset towards the round-level support at $80.00. A breach of the latter will unleash bears for more downside towards July 6 high at $76.40.

Bullish Correction Completion Expected Near TL

Sep 12 2022