Technical Analysis – WTI futures resume hike with weakened bullish backing



WTI oil futures’ latest upside push is confronting the upper Bollinger band around 65.38, although current positive impetus appears somewhat frail. Not too far back the commodity formed a support base around 57.25-58.14 after retreating from the 28½-month peak of 67.96 and has since then been adhering to the lower boundary of an ascending channel. The climbing simple moving averages (SMAs) are defending the bullish structure, while the slight fading in the slope of the 50-day SMA is suggesting that the price could retest the lower band of the channel.

The short-term oscillators are reflecting some waning in positive momentum, suggesting sellers are seizing the upper hand for now. The MACD, in the positive region, is holding above its red trigger line, while the RSI is struggling to improve further in bullish territory. The stochastic oscillator’s %K line has dipped back below the 80 level and is promoting growing negative price action.

If selling interest persists, support may originate from the nearby lower frontier of the channel around the 63.00 mark and the 50-day SMA, which has converged with the mid-Bollinger band currently at the 62.00 level. Breaking the bottom limit of the channel, next support could arise from the 60.06 barrier, which happens to be the 23.6% Fibonacci retracement of the up leg from 34.02 until 67.96. A dive beyond this too could encourage sellers to challenge the reinforced support foundation of 57.25-58.14.

If buyers regain control, immediate resistance may develop from the upper Bollinger band at 65.38 before the bulls target the 66.42 high and the multi-year peak of 67.96. Conquering the top could bolster buying interest, driving the price towards the 70.00-70.49 resistance band. An extension past this could then aim for the 72.87 barrier.

Summarizing, oil’s positive picture may endure as long as the price remains locked within the confines of the bullish channel. Yet, a retraction below the support zone of 53.78-55.05 could trigger strong negative tendencies.

Latest News

Technical Analysis – NZDUSD gains impetus within bullish channel



Technical Analysis – GBPJPY sellers unable to effectively contest ascent



Technical Analysis – USDCAD rises after posting 6-year low

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.