WTI Price Analysis: Stability above 200-EMA signals more upside

• WTI is sensing selling pressure after a sheer upside move.
• The oil price is aiming to shift its auction above the 200-EMA at $78.90.
• A drop in the 40.00-60.00 range by the RSI (14) indicates a loss in the upside momentum.

West Texas Intermediate (WTI), futures on NYMEX, have sensed selling pressure in early Europe after remaining sideways in the Asian session. Earlier, the oil price witnessed a steep fall after failing to hold the $81.00 resistance on Tuesday as the US Dollar Index (DXY) regained strength.

On a four-hour scale, the oil price is accelerating after a break above the downward-sloping trendline from November 7 high at $92.36. The black gold is aiming to shift its auction profile above the 200-period Exponential Moving Average (EMA) at $78.90, which indicates that the upside trend is solid on a long-term basis.

Meanwhile, the Relative Strength Index (RSI) (14) has dropped into the 40.00-60.00 range from the bullish range of 60.00-80.00, which indicates a loss in the upside momentum.

For more upside, the oil price needs to surpass the round-level resistance of $80.00, which will drive the asset toward December 5 high at $82.72 and the November 17 high at $85.00.

On the flip side, a break below December 22 low at $77.00 will drag the oil price toward December 12 high at $74.00, followed by December 7 low at $72.00.

WTI four-hour chart