WTI oil futures (December delivery) have been experiencing a prolonged decline since mid-June, while their two latest rebounds fell short at the lower boundary of the Ichimoku cloud. However, the commodity seems to be gaining some ground after encountering strong support at 81.30, with the price now aiming for the 50-day simple moving average (SMA).
The momentum indicators currently suggest that the bullish forces are strengthening. Specifically, the stochastic oscillator is ascending after rebounding from the 20-oversold zone, while the RSI has jumped above its 50-neutral mark.
Should buying pressures intensify, the price could ascend towards the recent rejection point of 92.30. Conquering this barricade, the bulls might aim for the August peak of 97.50, which overlaps with the 200-day SMA. A break above the latter could open the door for the 102.00 ceiling.
To the downside, if the positive momentum wanes and the price retreats again, initial declines could cease at the recent support region of 81.30. Dipping beneath that zone, the spotlight could turn to the nine-month low of 76.25. Even lower, the December low of 66.10 may provide further downside protection.
Overall, WTI oil futures are attempting a recovery in the last couple of daily sessions as positive momentum appears to be intensifying. For those efforts to materialize, the price needs to initially jump above the congested region that includes the 50-day SMA and the lower boundary of the Ichimoku cloud.