• An establishment in the balanced profile of $85.77-90.14 has bolstered the case of a bullish reversal.
• Sustainability above 200-EMA and advancing 50-EMA add to the upside filters.
• The RSI (14) needs to recapture the 60.00-80.00 range to trigger the upside momentum.

West Texas Intermediate (WTI), futures on NYMEX, have turned sideways after a firmer rebound to near $86.30 in the Asian session. The black gold has picked bids after concluding the corrective move from Monday’s high at $88.67. On a broader note, the oil prices have witnessed a juggernaut rally after a reversal move from the prior week’s low of around $81.00.

The oil prices have established themselves into the prior balanced area where auctions happened for a tad longer period. The balanced profile is plotted in the $85.77-90.14 range on an hourly scale and will serve as a major hurdle for the bulls.

The asset has managed to sustain above the 200-period Exponential Moving Average (EMA) at $86.78, which indicates that bullish bias has escalated further. Also, the 50-EMA at $86.31 is advancing, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range. A break into the bullish range of 60.00-80.00 will trigger an upside momentum.

A decisive break above Friday’s high at $86.78 will send the major towards the round-level resistance at $90.00, followed by August 11 high at $94.32.

Alternatively, bears could demolish the upside bias if it drops below Thursday’s low at $82.14 will rag the asset towards the round-level support at $80.00. A breach of the latter will unleash bears for more downside towards July 6 high at $76.40.

WTI hourly chart