Technical Analysis – WTI oil futures retreat below 50-day SMA

WTI oil futures (March delivery) have been stuck in a prolonged downtrend since June, posting a fresh one year-low of 70.30 in December. In the short-term, the commodity has begun another round of weakness, with the price dropping beneath its 50-day simple moving average (SMA).

The momentum indicators currently suggest that selling pressures are intensifying. Specifically, the MACD histogram has dropped below its red signal but remains above zero, while the RSI is flatlining below its 50-neutral mark.

To the downside, if the price extends its decline, immediate support could be found at the recent low of 76.20. Piercing through that zone, the commodity could challenge the 2023 bottom of 72.70. A break below that region may pave the way for the one-year low of 70.30.

On the flipside, should buyers regain control and push the price above the 50-day SMA, the recent resistance region of 82.65 might curb an initial rebound. Conquering this barricade, the bulls could aim for the November high of 92.50 before the 97.65 hurdle appears on the radar. Even higher, the price advance could cease at 102.00, which acted as both support and resistance in June.

In brief, WTI oil futures’ technical picture seems to be deteriorating as the price fell below the crucial 50-day SMA. For that bearish sentiment to reverse, the commodity needs to reclaim the aforementioned technical level.

Latest News

Gold: Top-down Technical Analysis


Technical Analysis – USDJPY finds support ahead of FOMC, but bears still loom



Technical analysis – NZDUSD stuck in range ahead of Fed meeting


Technical Analysis – EURGBP recoups weekly losses; stays below key barrier


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.