WTI crude oil futures are easing beneath the 20- and 50-day simple moving averages (SMAs), which are acting as a mid-level of the medium-term consolidation area of 72.70-82.65. The RSI is moving slightly lower below the neutral threshold of 50, while the MACD is losing momentum near its trigger and zero lines.
The market seems to be well supported by the lower boundary of the range at 72.70 and therefore only a decisively close below it would put traders in a more negative mode. If that floor is breached it would lead to a re-challenge of the 70.20 barrier, while below it the bears are eagerly waiting to take full control and drive towards a tougher barrier around 68.50.
Alternatively, if the bulls jump above the short-term SMAs, the spotlight will shift back to the 80.70 resistance and the upper band of the range at 85.65, a break of which would extend the upward move towards the 200-day SMA at 87.26. Above that, the door would open for the 95.60 top.
In brief, oil prices are expected to hold withing a sideways channel unless the price closes significantly below 72.70 or above 82.65.
