Since their deep fall towards 68.50, WTI crude oil futures have been going back and forth below the 20-period simple moving average (SMA) from the 32-month peak of 69.98. The technical picture is mixed as the RSI is lacking direction around its neutral threshold of 50, while the MACD supports that the pullback to the downside is likely to continue in the short term.
In case of negative pressures, the market could meet support at the 68.25 barrier before it heads lower to the 67.50 level. A successful close below this line could see a retest of the previous low of 66.16, while steeper declines could meet the 200-day SMA at 65.25.
On the flip side, a move to the upside could see immediate resistance at the 20-period SMA at 69.12 but should the market increase positive momentum above this area, the 32-month peak of 69.95 could be the next level in focus. Another strong barrier could be found at the July 2018 top at 75.07.
Turning to the medium-term picture, the market seems to be in a bullish mode given that oil trades above the 200-period SMA. But as long as the price remains below the 20-period SMA there is a concern for a bearish correction in the near term.
