WTI Price Analysis: Oil buyers prod weekly hurdle above $73.00 on US debt ceiling optimism

• WTI crude oil begins the week with a gap-up, crosses short-term resistance line on market’s mildly positive mood.
• Bullish MACD signals favor energy buyers but RSI conditions suggest limited upside room.
• Sustained trading beyond 200-HMA, immediate support line keeps Oil buyers hopeful.

WTI crude oil picks up bids to defend the week-start gap towards the north of $73.00, up 0.50% near $73.30 by the press time of the mid-Asian session on Monday. In doing so, the black gold surpasses a three-day-old descending resistance line while approaching a horizontal hurdle comprising multiple levels marked since May 19.

It should be noted that the initial agreement on the US debt ceiling extension allows the commodity price to remain firmer despite the challenges the deal has in Congress.

Also read: US President Biden: This deal is good news for the American people

It’s worth noting that the MACD indicator flashes bullish signals and favors the energy buyers but the RSI (14) approaches the overbought region and hence suggests limited upside room for the commodity price.

That said, the WTI bulls may quickly challenge the previous weekly peak of $74.70 on crossing the immediate horizontal hurdle surrounding $73.50-55. However, the monthly high of $76.60 and the late April swing high near $76.85 could check the quote’s further upside.

Alternatively, the resistance-turned-support line stretched from the last Wednesday and the 200-Hour Moving Average (HMA), respectively near $72.85 and $72.40, can challenge the WTI bears.

Also likely to challenge the commodity buyers is an upward-sloping resistance line from May 17, near $71.60.

WTI crude oil: Hourly chart

Trend: Limited upside expected