Further Oil price upside hinges on $80.30 breakout and Fed Chair Powell’s speech

• WTI crude oil recovers from key EMA confluence within 13-day-old falling wedge bullish chart formation.
• Steady RSI, bearish MACD signals and 4.5-month-old horizontal resistance area prod Oil buyers targeting fresh yearly top.
• Energy benchmark sellers need to conquer $77.30–20 zone to tighten grips.

WTI crude oil picks up bids to $79.30 as it extends the previous day’s U-turn from the key Exponential Moving Averages (EMA) heading into Friday’s European session. In doing so, the black gold improves within a two-week-old falling wedge bullish chart pattern as market players await Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.

It’s worth noting that the steady RSI (14) suggests the continuation of the latest rebound from the key EMAs towards the $80.00 round figure.

However, the stated wedge’s top line, close to $80.30, will be important to watch as a break which will confirm the black gold’s theoretical run-up towards $87.00.

During the run-up, a broad resistance zone comprising tops marked since April, between $83.40 and $84.40, will be a major challenge for the commodity buyers.

Meanwhile, a downside break of the 50-day EMA and the 200-day EMA confluence, close to $77.80, isn’t an open welcome for the WTI crude oil sellers as the stated wedge’s bottom line and the mid-July swing high could challenge the south-run near $77.30–20.

Should the Oil bears dominate past $77.20, the odds of witnessing a slump toward May’s peak of $74.70 can’t be ruled out.

WTI crude oil: Daily chart

Trend: Limited upside expected