WTI Price Analysis: Bulls are firmer on descending channel breakout, $116.00 eyed

• A firmer breakout of the descending triangle pattern has underpinned the bulls.
• The RSI (14) has shifted into a bullish range that adds to the upside filters.
• A minor pullback towards $104.02 will present an optimal buying opportunity for the asset.

West Texas Intermediate (WTI), futures on NYMEX, have displayed a strong upside move after printing monthly lows of $92.79 on Monday. The black gold has defended its critical bottom of $92.37 printed on March 15. The asset has delivered a three-day winning streak and is likely to extend gains after overstepping Thursday’s high at $107.00.

On a four-hour scale, a breakout of a descending triangle has put the bulls in the driving seat. Usually, a descending triangle breakout is followed by wider ticks and high volumes. The horizontal support of the chart pattern is plotted from March lows at $92.37 while the descending trendline is placed from March high at $126.51, adjoining the March 24 high at $115.87.

A bull cross, represented by 20- and 200-period Exponential Moving Averages (EMAs), is advocating the control of bulls on the asset.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00 from 40.00-60.00, which are hinting at a fresh impulsive wave ahead.

A minor pullback towards Wednesday’s high at $104.02 will be an optimal opportunity for the buyers, which will send the asset towards the March 28 high at $109.78, followed by March 24 high to near $116.00.

On the flip side, bears may dictate the prices if the asset drop below the 20-EMA at $100.80. This will drag the asset towards the round level support and horizontal support at $95.00 and $92.37 respectively.

WTI four-hour chart