Mon, Dec 05, 2022 @ 03:33 GMT
HomeContributorsTechnical AnalysisWTI Oil Futures Aim for Continuation Higher

WTI Oil Futures Aim for Continuation Higher

WTI oil futures (December delivery) closed strongly up by 4.0% on Wednesday at 88.26 after four consecutive days of muted trade, raising speculation that the upturn could gain extra legs in the near term.

Previously, the price stepped on the broken descending trendline to defend the rebound off the nine-month low of 76.25.

In momentum indicators, the RSI has climbed back above its 50 neutral mark and the stochastics keep sloping upwards, reflecting a bullish bias. Yet, the latter is already near its 80 overbought mark, whereas the MACD has barely entered the positive area, both warranting some caution.

Besides, with the 88.42 resistance standing firm, downside corrections cannot be ruled out. If the bulls breach that wall, the price may speed up to test October’s high of 92.32. Above that, the focus will turn to the 200-day simple moving average (SMA) at 97.40, a break of which is needed to clear the way up to the 100.50-101.50 constraining zone.

Alternatively, the price may again seek support within the 85.00 – 82.65 region. Failure to pivot here could bring the descending trendline under examination around 80.00. Even lower, the bears will attempt to re-activate the downtrend below 76.25 with scope to reach the 72.72 barrier from 2021.

In brief, the latest bullish move in WTI oil futures has increased the odds for a continuation higher, though traders will wisely wait for an extension above the 88.42 bar before they increase their buying orders.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading