WTI crude oil futures recorded a significant downfall over the past six days after they found strong resistance at the eight-month high of 65.60 last week. Currently, the price is flirting with the ascending trend line around the 57.70 support level, supposing a possible rebound on it or a breakdown.

The negative slope in the RSI, which falls comfortably below its 50 neutral mark, and the downfall of the MACD near its zero line, they are painting a bearish picture for the short-term trading. However, with the stochastic searching for a pullback in the oversold area, it is reasonable to believe that the sell-off may appear short-lived.

The 57.70 number is the nearest support that could reject any attempt lower. If not and the price extends negative momentum, the 61.8% Fibonacci retracement level from 51.00 to 65.60 of 56.56 in the Ichimoku cloud could take over ahead of the 55.00 region

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On the flip side, an upside reversal above the 50.0% Fibo of 58.29 could bring the 20-day simple moving average (SMA) of 59.30 back into view. Should it fail to hold, the 38.2% Fibo of 57.97 and the 40-day SMA, currently at 60.80 would be the next targets. A steeper bullish movement could also reach the 23.6% Fibo of 62.14.

In brief, WTI crude oil futures are facing downside pressure near the medium-term diagonal line, with sellers waiting for a decisive close below it to restore optimism over a down-trending market.


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