Oil Technical Analysis: $69.50 is the level to beat for the bears

• WTI oil has witnessed an upside break of the falling channel, signaling the pullback from the Aug. 30 high of $70.47 has ended and the bulls could attack the rising trendline resistance, currently located at $70.38.  The 14-hour relative strength index (RSI) is also trending north in favor of the bulls.
• Only if the bears manage to pull off a break below $69.50 (Sep. 3 low support on the hourly chart) is a deeper sell-off likely. Moreover, it would mean the rally from the Aug. 21 low of $65.29 has made a temporary high of $70.47 has the bears have taken over.

Hourly Chart

Current Price: $70.14

Daily High: $70.16

Daily Low: $69.97

Trend: Mildly bullish

Resistance

R1: $70.38 (trendline hurdle)

R2: $71.63 (July 13 high hurdle on the 4-hour chart)

R3: $72.88 (May 22 high)

Support

S1: $69.97 (session low)

S2: $69.51 (Sep. 3 low support on the hourly chart)

S3: $69.00 (psychological support)