WTI crude oil futures have successfully climbed beyond the medium-term ascending trend line again and found strong resistance around the 20- and 40-day simple moving averages (SMAs). However, the RSI indicator is mirroring the latest decline of the commodity and is touching the neutral threshold of 50, while the MACD is holding slightly below its trigger and zero lines.
In the event of an upside reversal and a surge above the short-term SMAs, the 116.60 resistance level could act as a barrier before being able to re-challenge the 261.8% Fibonacci extension level of the down leg from 85.35 to 62.27 at 122.85. A break above this level would shift the medium-term outlook to a more positive one as it would take the price above the 14-month high of 130.50.
On the other hand, further losses should see the latest lows of 92.20 acting as a major support below the uptrend line. A drop lower would reinforce the bearish structure and open the way towards the 81.92-85.35 region, which is standing marginally above the 200-day SMA at 81.16.
All in all, WTI futures are gaining some ground after the jump above the uptrend line, though only a significant rally beyond the SMAs would endorse the positive bias in the short-term timeframe.
