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.

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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.

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