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WTI Oil Moving North of $100 a Barrel

West Texas Intermediate returned above $100/barrel on Monday, and is now trading at a 2-week high.

As the 5/13 US session got underway, WTI continued to move north of 100. 


(WTI daily chart, 5/13)

The daily chart shows a market in consolidation, but also in a slight bullish mode in 2014 after finding support at 91.25 in January. A couple more signs of a bullish development:

1) price is trading above the moving averages (200,100,50). But these MAs are flat, so the market is at best neutral-bullish.
2) The RSI is showing development of bullish momentum as the reading has tagged above 70, and has been holding above 40 this year.

With the current technical condition, there is upside above 100 towards the 2014-highs around 105. 

A break below 97.00 will take away the bullish bias, and the market will remain neutral, and the 2014-lows will be in sight.

It should be noted that WTI has been oscillating around the 100 mark for the past few years now. We can expect some short-term move away from this level, but make sure to remember that WTI is in a multi-year consolidation.