WTI Price Analysis: Pullback remains elusive beyond $119.70

• WTI retreats from three-month high, snaps two-day uptrend.
• RSI pullback favors further weakness but previous support tests bears.
• Bulls need validation from $122.50 before targeting yearly top.

WTI bulls take a breather around the highest levels since March, pausing two-day advances around $120.50 heading into Thursday’s European session.

In doing so, the black gold takes clues from the RSI’s pullback from the overbought territory.

It should be noted, however, that the previous resistance line from May 31, around $119.70, holds the key to the WTI bear’s welcome.

Following that, the weekly support line and the 200-HMA, respectively around $118.30 and $116.20, will test the sellers before giving them control.

On the flip side, the recent high around 121.35 and multiple pauses near 122.50, marked during late March, will challenge the WTI crude oil buyers ahead of directing them to the yearly high of $126.51.

In a case where the energy benchmark remains firmer past $126.51, the odds of its run-up towards the $130.00 threshold can’t be ruled out.

WTI: Hourly chart

Trend: Further weakness expected