WTI crude oil picks up bids to pare the two-day losses around $80.30, printing mild gains during early Wednesday in Asia. In doing so, the black gold prices benefit from the softer US Dollar amid sluggish trading hours. However, economic fears and growing concerns over inventory build, as well as higher supplies, seem to probe the Oil buyers of late.

the black gold’s upside momentum could be witnessed by a fortnight-long ascending trend line, as well as a firmer RSI (14), not overbought. The latest pullback portrays the WTI’s inability to cross the 100-DMA hurdle, around $81.80 by the press time. However, bullish MACD signals and firmer RSI, not overbought, joins the quote’s sustained trading beyond the 50-DMA support of $78.05 to keep the Oil buyers hopeful.

However, a horizontal area comprising multiple levels marked since October 2022, near $81.30 by the press time, appears a tough nut to crack for Oil buyers.

Even if the quote manages to cross the $81.30 hurdle, the 100-DMA level surrounding $81.85 could challenge the energy bulls.

It’s worth noting that the tops marked on Wednesday and in early December, respectively around $82.70 and $83.30, could lure the commodity buyers on breaking the $81.85.

On the flip side, pullback moves remain elusive unless the quote stays beyond the aforementioned two-week-old support line, around $79.00 as we write.

Following that, the September 2022 low near $76.00 and the monthly bottom of $72.64 could gain the WTI bear’s attention.

To sum up, Oil remains on the buyer’s radar but the road towards the north appears bumpy.

Roads to the upside seem broad but bumpy

Jan 25 2023