WTI crude oil futures have advanced considerably over the last five days, finding a top today near the 200-period simple moving average (SMA) after the completion of a double bottom pattern in the 4-hour chart. Also, the commodity is creating a new two-week high near 22.24 and the bullish action is confirmed from the bullish crossover within the 20- and 40-period SMAs.
From the technical viewpoint, the RSI indicator is approaching the 70 level with weak momentum, while the stochastic oscillator looks overbought as it is ready to complete a bearish cross within its %K and %D lines above the 80 level.
Further advances could open the way for the 61.8% Fibonacci retracement level of the downward move from 36.22 to 6.75 at 25.00. Above this crucial line, the 30.00 round number could come next, taken from the peak on April 13, while even higher, the gap from March 9 from 34.00 to 41.20 could be in focus.
In the negative scenario, in case of a drop beneath the 50.0% Fibonacci mark of 21.53, the price could hit the 20-period SMA at 19.50 ahead of the 38.2% Fibonacci of 18.03. Below that, the Ichimoku cloud and the 40-period SMA at 16.51 could halt downside movements. However, if there is a decline below these levels, WTI could touch the 23.6% Fibonacci at 13.68.
Summarizing, WTI futures have been in a bullish correction move since the rebound on the double bottom of 10.00 in the very short-term. A jump above the 200-period SMA could endorse this positive view.
