WTI Crude Oil Extends Gains on the Way to $76.72

Looking at the U.S. West Texas Intermediate (WTI) crude oil futures contract, crude remains in a steady upwards price trend. The U.S. contract has found strength to climb comfortably above some key layers of technical resistance.

These upside barrier were at the high price points from March 2019 and 2020. These barriers had capped gains of past trade sessions. However, the WTI contract is now trading well above these levels as buyers seem to be in control.

With that said, immediate technical support comes into play at $66 per barrel with $65 per barrel the next layer of technical support. As long as price action remains above these levels, WTI crude oil has room to move higher in the short-term.

Daily US WTI Crude Oil Technical Analysis

Looking at price action, on the above weekly MT 4 price chart, there is a key upside barrier at the 2018 high price point at $76.72 per barrel.

This was also the 2011 yearly low price point. There were a couple of bottoms formed near there at $75 and $80 per barrel. The next upside barrier comes into play at the 2012 low price point at $81.02 per barrel.

There is a key falling trend line going back a decade that could provide the first key hurdle for crude oil. The March 2019 and 2020 high price points could also play a factor at some point.

Right, U.S. crude looks constructive for more possible gains. The rally appears intact for now with limited corrections lower only serving as coil points for further upside momentum.

The technical indicators, which include the MACD histogram and the relative strength index (RSI) look constructive which is a good sign for crude oil bulls.

Also factoring into positive price action this week is continued global economic growth as the global economy continues to emerge and recover from the global coronavirus pandemic (Covid-19).