WTI crude oil futures have plummeted below the six-and-a-half-year high of 76.96 over the last couple of sessions, taking the market beneath the short-term 20-day simple moving average (SMA). However, the commodity remains above the long-term rising trend line, indicating that the broader picture is still positive.
Looking at the technical indicators, the MACD oscillator has dived beneath its trigger line in the positive region, while the RSI is approaching the 50 level with strong momentum. The Ichimoku lines are shifting to the downside despite the cloud’s movement higher.
Any steeper bearish movements could take the price towards the 40-day SMA currently at 69.70 ahead of the strong supportive uptrend line near 69.12. Marginally below these lines, the 67.96 support could pause the negative move, though more declines could open the way for the 60.66 barrier.
On the other hand, a rebound off the short-term SMAs could shift the bias back to positive, touching the multi-year high around 77.00. Above this hurdle, the October 2014 inside swing low of 79.17 could be in the spotlight.
Summarizing, oil prices remain in positive territory despite the latest aggressive selling interest. Any moves underneath the ascending line and the Ichimoku cloud could switch the market to neutral.