Technical Analysis – WTI oil futures signal uptrend continuation; eyes on 66.60

WTI oil futures for June delivery could not find enough buyers to breach the heavy resistance around 66.60 on Wednesday. But that ceiling looks now to be a part of a large ascending triangle – a positive signal that the paused one-year-old uptrend could soon resume.

The momentum indicators show some caution in market sentiment but keep leaning on the bullish side as the RSI remains above a supportive trendline despite marking a lower high in the bullish territory. The MACD has also been lacking energy since the start of the month, but it continues to move above its red signal line.

A decisive close above 66.60 could give the green light for a new bullish wave to start, bringing the 70.10 barrier first into view. Slightly higher, the 72.70 level had been tested several times during 2018, therefore it might attract some interest before all attention shifts towards the 2018 peaks registered within the crucial 75.24 – 76.87 zone.

On the flip side, should the bears push the price below the triangle and the 20-day simple moving average (SMA) at 63.88, selling pressure could scale up to the 60.61 – 59.74 restrictive area, where the bottom of the Ichimoku cloud is placed too. Heading lower, the price may examine the confidence in the uptrend near the previous low of 57.25, a break of which could trigger an aggressive decline towards 53.80.

In brief, WTI oil futures signal the resumption of the uptrend through a triangle pattern. A clear move above 66.60 could trigger the next bullish phase, while a drop below 63.88 could give the lead to the bears.

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