WTI oil futures are trending higher and have shifted to a more bullish bias after breaking above the 53.00 level. The recent rally stalled at 54.43, a level not seen since late February.
Risk is to the upside but the market is now consolidating recent gains and is pivoting around the 54.00 level after upside momentum got exhausted. The positively aligned 20 and 50-period moving averages support the bullish view.
Soft support is at 53.71, the October 27 low and a break below it would shift the focus to the downside to target 53.00, placing the market back to a broader neutral trend. The next downside targets are at strong support levels which are expected at 51.00 and 49.00 and 47.00.
Rising above the 54.43 peak would put prices on the path for a move towards the previous major peak at 55.00 (February 21 high).
Looking at the 4-hour chart, WTI oil futures are steady in a small range. After RSI reached oversold levels above 70, it was expected that the market would consolidate. A daily close above 54.00 would be constructive for the bullish outlook.
