WTI oil futures have moulded a strong base from 57.25 to 58.10 and are consolidating around the 60.06 mark, which happens to be the 23.6% Fibonacci retracement of the up leg from 34.02 until 67.96. The commodity’s price action is currently confined between the 57.25 and 63.13 limits. However, the advancing simple moving averages (SMAs) are nourishing the broader bullish structure, while the Ichimoku lines are suggesting an evaporation of directional impetus.
The short-term oscillators are demonstrating an environment of subdued directional momentum but lean marginally in favour of the upside. The MACD is barely in the bearish area, sandwiched between the red trigger line and the zero threshold, while the persisting RSI is struggling to step above the 50 level. The stochastic %K line is nudging above the %D line and is suggesting a pickup in buying interest.
Receiving adequate traction from the floor of the range, buyers may overpower the capping 23.6% Fibo and 50-day SMA residing around the 60.00 hurdle before challenging the restrictive roof. If buyers propel beyond this curbing barrier, which is serving the latest sideways price action, the price may then target the resistance zone between the 66.57 high – from April 2019 – and the multi-year peak of 67.96.
If sellers seize control and steer the price beneath the 57.25-58.10 floor, the next hardened support could develop between the 38.2% Fibo of 55.05 and the 53.78 border. Should this foundation also fail to dismiss the decline, the 50.0% Fibo of 51.07 could then draw traders’ focus.
Summarizing, the commodity’s sturdy uptrend appears to contain fuel in the tank. If the price persists above 57.25, the picture becomes increasingly skewed to the upside, while a dive below the encompassed 100-day SMA could intensify negative pressures.
