WTI Price Analysis: Oil has room to rise after recapturing $72 mark

• WTI price is looking to retest weekly tops above $72.
• Omicron optimism and China stimulus back the higher-yielding oil.
• WTI could rise towards $74 before the bear cross gets confirmed.

WTI (NYMEX futures) is trading with moderate gains on Wednesday, looking to extend the recent recovery rally amid easing fears over the negative effects of the new Omicron covid variant on global economic growth.

Further, a fall in the American Petroleum Institute’s (API) weekly crude stockpiles also underpins the sentiment around the black gold. However, the main driver remains the escalating geopolitical tensions between the US and Russia over the Ukraine invasion matter.

At the time of writing, the US oil is flirting with daily highs near $72.10, up 0.40% on the day.

Meanwhile, WTI’s daily technical setup shows that the price has the room to rise towards a powerful resistance zone around the $74 mark, where the bearish 21-Daily Moving Average (DMA) and horizontal 100-DMA converge.

However, if the 21-DMA crosses the 100-DMA for the downside on a daily closing basis, then that would confirm a bear cross.

The Relative Strength Index (RSI) edges higher but remains below the midline, suggesting the bearish risks still persist.

A rejection at a higher level could recall the sellers for a retest of the daily lows at $71.11, below which the 200-DMA support at $70.00 could be challenged.

Alternatively, immediate resistance is seen at Tuesday’s high of $72.81. The next relevant upside target for bulls is pegged at the $74 level.

 WTI: Daily chart

WTI: Additional levels to watch