WTI Price Analysis: Correction to near $90.00 make place for smart money

• The oil prices have slipped to near $90.00 as DXY bulls have attempted recovery in Asia.
• Advancing 50-and 100-EMAs add to the upside filters.
• Corrective moves are considered an entry area of smart money in a Rising Channel formation.

West Texas Intermediate (WTI), futures on NYMEX, have extended losses in the Tokyo session after surrendering the immediate support of $90.90. The black gold has witnessed selling interest as the US dollar index (DXY) has displayed signs of recovery amid anxiety ahead of US mid-term elections.

On an hourly scale, the black gold is auctioning in a Rising Channel chart pattern that indicates an upside structure. The upper portion of the chart pattern is placed from October 20 high at $86.94 while the lower portion is plotted from October 31 low at $84.78.

The asset has corrected to near the 50-period Exponential Moving Average (EMA) at $90.70, while the 100-EMA at $89.80 is still untouched and is aiming higher, which indicates more upside ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range and is likely to find support around 40.00.

Going forward, a drop near the horizontal resistance placed at Wednesday’s high of $89.66 will act as a buying opportunity for the market participants. Bulls may drive the oil prices toward Tuesday’s high at $91.40, followed by Monday’s high at $92.92.

On the flip side, the oil prices could face a sheer downside to near Wednesday’s low at $87.00 if they drop below the round-levels support of $89.00. A slippage below Wednesday’s low may drag the asset further toward October 31 low at $84.78.

WTI hourly chart