WTI Price Analysis: Retreats from previous resistance around $88.00

• WTI pares the biggest daily gains in a week, fades recovery from eight-day low.
• Resistance-turned-support from late September guards immediate upside even as oscillators favor buyers.
• 200-SMA puts a floor under the oil prices, buyers need validation from $92.65.

WTI crude oil price eases to $87.90 after bouncing off a one-week low to print notable gains the previous day.

In doing so, the black gold takes a U-turn from a 12-day-old previous support line. However, sustained recovery from the 200-SMA and firmer RSI (14), as well as the impending bull cross on the MACD, seems to keep the commodity buyers hopeful.

That said, a clear upside break of the immediate trend line hurdle near $88.65 appears necessary for the oil bulls to keep the reins.

Following that, the 61.8% Fibonacci retracement level of late August-September moves, near $89.20, will be challenging the upside moves.

It should be noted, however, that a six-week-old horizontal resistance area near $92.25-65 will be a tough nut to crack for the WTI buyers.

Alternatively, pullback moves remain elusive unless breaking the 200-SMA level of $85.15.

If the oil bears conquer the stated SMA support, a downward trajectory to the late September swing high of $82.50 and the 23.6% Fibonacci retracement level of $81.10 can’t be ruled out.

WTI: Four-hour chart

Trend: Further upside expected