West Texas Intermediate futures is on course for a bullish correction and is posting some gains today, following the rebound on the 64.20 support level. The price jumped above the 66.00 handle and the 23.6% Fibonacci retracement level of the downleg from 72.87 to 64.20, near 66.25, while is currently completing a new eight-day high around 66.49.
The momentum indicators are supportive of the bullish picture, with the RSI rising into positive territory above 50 and approaching the 70 overbought mark. The MACD oscillator entered the bullish area suggesting upside correction in the near term.
Immediate resistance is being provided by the 67.30 resistance level, taken from the high on June 1. Slightly above this region, the 38.2% Fibonacci mark of 67.50 could act as significant resistance before being able to re-challenge the 50.0% Fibonacci, which stands near the 68.60 hurdle.
In case of a downward attempt and a slip below the 23.6% Fibonacci, the price would likely meet support at the 20- and 40-simple moving averages at 65.70 and 65.50 respectively in the 4-hour chart. A break below these levels would ease the upside pressure and retest the 64.85 support that would help turn the very-short-term bias to bearish one again.
In the medium-term, the bearish outlook remains intact, however, there is a significant bullish leg indicating for a positive correction.
