WTI oil futures are lacking positive thrust to surpass the resistance border moulded between the 66.42 high and the 28½-month peak of 67.96. The advancing 100- and 200-day simple moving averages (SMAs) are aiding the bullish structure, while the flattening 50-day SMA, is reflecting the recent struggle in the commodity to log further improvements.
The static Ichimoku lines are indicating the absence of positive drive necessary to revive the uptrend, while the short-term oscillators are conveying mixed signals in directional preference. The MACD, although only slightly, has just reclaimed the area above its red trigger line in the positive zone. However, the stochastic lines are currently in overbought territory but the %K line is stalling, while the RSI is hovering not too far above the 50 threshold, and is also looking increasingly heavy.
If the immediate buffer zone shaped between 66.42 and the multi-year high of 67.96 manages to direct the price down, support could commence around the stationary Ichimoku lines, around 64.22 and 63.74 respectively. Pulling below these, congested downside limitations may then begin from the Ichimoku cloud’s upper surface, in-line with the 50-day SMA at 62.65, ahead of the 61.54 low and the 100-day SMA, glued on top of the 60.06 barrier. A deeper retreat past the latter, which happens to be the 23.6% Fibonacci retracement of the up leg from 34.02 until 67.96, could challenge the support base of 57.25-58.14, formed a little while back.
To the upside, more intense buying interest would need to evolve to navigate the price past the alleged roof and decisively above the 68.00 hurdle. This scenario could encourage buyers to target the 70.00-70.49 resistance boundary from mid-October 2018, while additional gains could pilot the price to test the 72.41-73.06 resistance band, relating to the earlier days of October 2018.
In conclusion, overcoming the immediate resistance zone, which contains the 67.92 high from where the commodity aggressively collapsed back in October 2018, could bolster oil’s bullish mood.
