Technical Analysis – WTI oil futures flatten around 70.00; bullish bias intact



WTI oil futures for July delivery are underneath the 70.10 -72.10 key tough resistance area from 2018 for the fourth consecutive day following the break above a bullish ascending triangle.

The increasing distance between the red Tenkan-sen and blue Kijun-sen lines and the positive momentum in the MACD raise the odds for additional upside movements in the market. Still, a consolidation phase cannot be ruled out in the near term given the downward reversal in the Stochastics and the stabilization in the RSI.

Should the 70.10 wall hold firm, the price could immediately pull back to seek support around the red Tenkan-sen line at 68.55, while lower, the surface of the broken triangle and the 20-day simple moving average (SMA) could provide a stronger footing around 67.00. If sellers persist, pushing the price below the triangle and the 50-day SMA too, the door would open for the 61.00 number.

Alternatively, a decisive close above 72.10 could generate fresh buying towards the 2018 peaks registered within the 75.24 – 76.87 territory. A rally above the 80.00 mark - last active during 2014 - could be a more important milestone for the bulls.

Summarizing, WTI oil futures are looking cautiously bullish in the short-term picture. A clear move above 72.10 could renew buying interest, while a drop below 64.25 could cut some exposure in the market.

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.