WTI oil futures for April delivery have fully healed the pandemic damage, looking for fresh highs above the 63.00 level.
The momentum indicators cannot doubt the case of another bullish wave as the upward direction in the red Tenkna-sen line continues above the blue Kijun-sen without interruption. Moreover, the MACD has regained strength above its red signal line, while the RSI, although having peaked within the overbought area, is not willing to exit that territory yet.
While the above keep the short-term bias on the positive side, a pullback would not be very surprising as the price is hovering around the topline of the ascending channel which also coincides with the 63.70 hurdle from January 2020. A close beyond that threshold may generate additional buying, likely towards the top of 2019 at 66.57 and the 67.65 restrictive region.
In the event of a downside reversal, the red Tenkan-sen line currently around 61.00 may stop the price from reaching the 20-day simple moving average (SMA) and the bottom of the channel seen around the previous trough of 57.39. If the sell-off extends below the tube, the 50-day SMA could immediately catch the fall near 54.00.
Overall, WTI oil futures reflect a clear bullish market both in the short- and the medium-term picture. A step above the 63.70 barrier could trigger the next upside breakout.