WTI oil futures have been moving sideways in the past two weeks and are trading in the upper half of a broader range that has been forming during the past month following the rise above 49.00 on September 13.
On the 4-hour chart, there was a recent bounce ahead of the 49.00 level which is now considered to be strong support. Prices moved towards the upper end of the one-month range where they are now consolidating. As long as the 20-period moving average provides support, there is room for more upside for a re-test of the 52.83 peak. A rise above this range-high would help trigger a rally towards the 55 area.
Alternatively, a drop below the mid-point of the September – October range near the 51.00 area would shift the focus to the downside. Some soft support levels exist at 50.85, 50.13 before reaching the 49.07 low at the bottom of the range.
Trend and momentum readings on the 4-hour chart are pointing to a neutral bias in the near term with the possibility of a move back to the downside since prices are near the top of the one-month range.
