Oil fades bounces off five-week-old rising support line around mid-$81.00s

• WTI crude oil stays defensive after bouncing off one-week low.
• Overbought RSI, receding bullish bias of MACD prod energy bulls below eight-month-old horizontal resistance.
• Black gold stays on buyer’s radar unless breaking 200-DMA.

WTI crude oil traders struggle for clear directions, treading water around $81.50 heading into Friday’s European session. In doing so, the black gold fails to extend the previous day’s rebound from an upward-sloping support line from June 27.

That said, overbought RSI and looming bear cross on the MACD challenge buyers of the energy benchmark as it seesaws below the key upside hudle, namely a horizontal area comprising multiple tops marked since December 2022, close to $83.30-40.

It’s worth noting that the weekly high surrounding $82.20 and the early 2023 peak of around $82.70-80 act as immediate upside hurdles for the WTI crude oil price.

In a case where the commodity price rises past $83.40, the $90.00 round figure may prod the bulls before directing them to the tops registered in October and November 2022, close to $92.65 and $92.95 in that order.

On the flip side, a daily closing beneath the aforementioned support line stretched from late June, close to $79.80 at the latest, will challenge the weekly low of around $78.50.

However, the Oil bears remain off the table unless witnessing a daily closing beneath the 200-DMA support of around $76.40.

Overall, WTI crude oil losses upside momentum but the bears are far from taking control.

WTI crude oil: Daily chart

Trend: Pullback expected