- WTI oil finds significant support at 200-week SMA
- Will the price end the bearish move soon?
- RSI and stochastic suggest upside correction
As the year 2023 is coming to an end, WTI crude oil is developing beneath January’s market price. The price is currently testing the 200-week simple moving average (SMA) after seven consecutive red weeks, suggesting that the bearish action may come to an end and 2024 could be more optimistic for oil prices.
Weekly oscillators suggest that downside momentum is losing steam, reflecting the latest pullback in the market. The RSI has turned up in the negative area, while the stochastic oscillator is posting a bullish crossover within its %K and %D lines in the oversold territory. However, the MACD is still strengthening its bearish momentum below its trigger and zero lines.
In case buyers take back control and pierce above the 50-week SMA, which stands near 77.90, that would bring the price towards the 100-week SMA at 86.14 which provides strong resistance to advances. Even higher, another significant region to watch is 95.00-97.80 which if penetrated would switch the outlook to bullish.
Now should sellers stay in charge, the first obstacle to the downside is the 200-week SMA at 71.80, which has been supporting the price since January 2021. If violated, the spotlight would then shift to the 67.00 handle ahead of the next support lines at 64.20 and 61.85, taken from the lows on April 30 and the bottom in November 2021.
Summarizing, the one-year outlook remains neutral. A decisive break above 95.00 is needed to bring that into doubt, although a downside movement would require much heavier declines below 67.00.
 after seven consecutive red weeks, suggesting that the bearish action may come to an end and 2024 could be more optimistic for oil prices. ){kind=link}