WTI Price Forecast: Bulls are firmer on Symmetrical Triangle breakout, $120.00 looks likely

• An upside break of the Symmetrical Triangle has pushed the asset into a positive trajectory.
• The RSI (14) has shifted into a bullish range of 60.00-80.00, which adds to the upside filters.
• A pullback towards the breakout area will be a bargain buy for the market participants.

West Texas Intermediate (WTI), futures on NYMEX, is oscillating in a narrow range of $111.20-112.60 in the early European session. The asset has entered into a consolidation phase after a stellar upside move on Monday. The oil prices witnessed a strong upside move after violating the psychological resistance of $110.00 and have made a fresh monthly high at $112.65.

An upside break of the Symmetrical Triangle is advocating a bullish momentum ahead. The ascending trendline of the above-mentioned chart pattern is placed from April low at $92.65 while the declining trendline is plotted from March 24 high at $115.87. The asset is consolidating above the symmetrical triangle formation which indicates an upcoming pullback as the market participants test the strength of the chart pattern.

The 20- and 50-period Exponential Moving Averages (EMAs) at $108.27 and $106.10 respectively are scaling higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has comfortably shifted into a bullish range of 60.00-80.00, which signals more gains ahead.

The morning consolidation in the black gold is indicating a pullback towards the declining trendline of the chart pattern at $108.87, which may call for a responsive buying action. An occurrence of the same will drive the asset towards March 24 high at $115.87, followed by the psychological resistance at $120.00.

On the flip side, bulls could lose control if the asset tumbles below Monday’s low at $106.32. This will drag the asset towards Thursday’s low at $101.32. A slippage below Thursday’s low will bring further downside to near May 7 low at $97.21.

WTI four-hour chart