Oil Price Forecast: WTI struggles to stay above $25.00, nears short-term resistance
- WTI Futures slips from four-week high.
- Overbought RSI conditions, nearness to the short-term trend channel resistance suggests pullback.
- Sellers look for entry below the monthly falling support line, previous resistance.
WTI futures (June) on NYMEX drop to $25.27 as the oil trading begins for Wednesday’s Asian session. In doing so, the energy benchmark pulls back from a four-week top but still gains over 3.0% on a day.
It should also be noted that the black gold nears the resistance line of a one-week-old rising trend channel amid the overbought RSI conditions.
Hence, sellers are waiting for entries below the month-old resistance-turned-support line, currently around $24.75.
In doing so, April 21 high near $22.60 could become their target while the said channel’s support line, close to $21.00, might restrict further downside.
Alternatively, an upside clearance of $26.50 channel resistance will propel the buyers towards the previous month high near $29.10 ahead of challenging $30.00 round-figure.
WTI four-hour chart
Trend: Pullback expected