WTI oil futures have been rising steadily and making a recovery following a big drop yesterday. On the 4-hour chart, MACD is trading in a bullish direction and has broken above zero while RSI is also rising and attempting to break above 50 into bullish territory.

The move to the upside has encountered resistance provided by the 50-period moving average and also by the 38.2% Fibonacci retracement (47.87) of the decline from 50.19 to 46.43. Immediate support is at the 20-period MA at 47.62. A break of this support area would likely see an acceleration of a fall towards 46.90 (August 18 low) ahead of 46.43 (August 17 low). From here, there would be a resumption of the downtrend that started from the 50.00 region.

For now there is no clear trend for the short-term and the bias is expected to stay neutral between the 20 and 50-period MA. Only a move above 48.85 would weaken downside risk and bring the market above the Ichimoku cloud. The next target would be the key 50.00 level. This is a strong resistance area and a break above it would indicate a shift to a bullish bias.

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