West Texas Intermediate (WTI) futures advanced to a fresh four-year high earlier today, reaching the 75.88 resistance level. However, price action is at the moment taking place below this peak, losing its strong positive momentum. The MACD oscillator is flattening in the bullish area, while the RSI indicator is sloping downwards in the overbought zone, suggesting an overstretched bias.
If prices continue to head lower and slip below 75.28, support should come from 73.70, taken from the high on September 28 before touching the 20-simple moving average (SMA) in the 4-hour chart. A drop below this level would turn the focus to the downside in the short-term and open the way towards the 23.6% Fibonacci retracement level of the upleg from 64.40 to 75.88, around 73.17.
On the upside, if the price posts a significant leg above the aforementioned four-year high, the next level for investors to have in mind is the 77.13 barrier, identified by the lows on June 2012.
To summarize, WTI crude looks bullish in the short-term again despite the latest bearish movement, while in the long-term picture, it has been strongly positive since January 2016.