WTI Price Analysis: Awaits OPEC+ decision while within a symmetrical triangle
- WTI price meets supply, as RSI turns south on the 4H chart.
- A symmetrical triangle breakdown likely on the OPEC+ decision.
- Any rebound could face stiff resistance at the key 68.30 barrier.
WTI (NYMEX futures) has stalled its rebound heading into the OPEC and its allies (OPEC+) meeting, starting at 1300 GMT on Thursday.
The alliance is likely to decide on the planned oil output hikes, in the face of the US Strategic Petroleum Release (SPR) and the looming fears over the Omicron covid variant.
At the time of writing, the US oil is easing towards $66.00, having faced stiff resistance just below the $67 mark.
Looking at WTI’s four-hour chart, the black gold is wavering within a symmetrical triangle formation, with the risks skewed to the downside, despite the recent recovery.
The Relative Strength Index (RSI) has turned slightly lower while sitting just above the oversold territory, justifying the view of a potential downside.
Meanwhile, WTI faces strong offers at around $68.30, which is the confluence of the bearish 21-Simple Moving Average (SMA) and falling trendline (triangle) resistance.
Therefore, unless bulls find acceptance above the latter, bears will continue to remain hopeful, with the rising trendline (triangle) support at $64.94 likely at risk.
A four-hourly candlestick closing below that demand area will open floors for a retest of the multi-month troughs at $64.31.
The next downside target for WTI sellers is envisioned at the $63.50 psychological level.
WTI: Four-hour chart
WTI: Additional levels to watch