WTI stages a sold comeback from 21-DMA on escalating Russia-Ukraine tensions
- WTI price shoots higher amid escalating Russia-Ukraine tensions.
- Bulls remain hopeful while above the 21-DMA critical support.
- Further upside will gains traction only above the $93 threshold.
WTI (NYMEX futures) is staging a solid rebound from near the $88.00 region, snapping a two-day downtrend, in the wake of the escalation in the Russian-Ukraine conflict.
According to the Russian news agencies, Ukraine’s armed forces were seen firing grenades and mortars in a conflicted area in East Ukraine during late Asia. Although, Ukraine denied any such shelling but incoming contradictory reports from both sides keep the situation tense.
The reports triggered a sudden risk-off wave across the markets while putting a solid bid under the black gold, driving WTI higher from daily lows of $88.21 to as high as $91.36.
At the time of writing, US oil is trading 1.70% on the day around $90.35, finding support from the geopolitical risks.
From a near-term technical perspective, WTI bulls remain hopeful so long as they hold above the upward-sloping 21-Daily Moving Average (SMA) at $88.18.
The 14-day Relative Strength Index (RSI) inches higher while above the central line, allowing room for more upside.
On buying resurgence, WTI could retest the daily highs, above which doors will open up towards Wednesday’s high of $93.06.
On the flip side, if the 21-DMA is breached on a daily closing basis, then a fresh downswing will get initiated towards the previous week’s low of $87.46.
The last line of defense for bulls is seen at $86.50, the psychological support.
WTI: Daily chart
