WTI oil futures for August delivery managed to break resistance around the 50% Fibonacci of the 42.53-66.57 upleg and pick up steam towards a new three-week high of 56.33 on Thursday.
However, buyers would like to see prices running above the 38.2% Fibo of 57.37 and the 200-period simple moving average (SMA) in the four-hour chart to put faith in the recent rally. Should the MACD and the red Tenkan-sen continue sloping upwards such a case may occur in the near-term.
Slightly up, the 58.16 number may attract some attention ahead of the 59.13 mark.
Otherwise, if the market proves overbought, as the RSI has already jumped above the 70 level, the price could reverse south to retest the 50% Fibonacci of 54.55. Lower, the 50-period SMA would be the next target before a bigger battle starts around the 51.70 barrier.
In brief, WTI oil futures are looking cautiously bullish in the short-term.