HomeContributorsTechnical AnalysisWTI Crude Futures Touch Rising Trend Line, Outlook Remains Bullish

WTI Crude Futures Touch Rising Trend Line, Outlook Remains Bullish

WTI crude oil futures tumbled lower over the last couple of sessions, reaching again the short-term ascending trend line in the 4-hour chart. Also, oil prices dropped below the 20-simple moving average (SMA), while the technical indicators are confirming the recent negative structure in the near-term. The RSI indicator is pointing south in the negative zone and the stochastic oscillator is ready for a bearish cross within the %K and %D lines.

Should the price manage to strengthen its negative momentum and post a significant leg below the uptrend line, the next support could come from the 50.0% Fibonacci retracement level of the upleg from 64.40 to 76.90, around 70.64. A break below this area would shift the bias to a more neutral one and open the way towards the 70.00 handle. Below this level, the next target could come from the 61.8% Fibonacci mark of 69.17.

On the flip side, if prices rebound on the rising trend line, confirming the short- to medium-term bullish bias, the 38.2% Fibonacci of 72.12 could come in focus again. Further advances could drive oil until the 72.70 – 73.00 area, which encapsulates the 40-SMA. The next key resistance to watch higher is the 23.6% Fibonacci of 73.94.

To summarize, WTI crude looks neutral to bearish in the very short-term, while in the longer-term picture, it has been strongly positive since January 2016.

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