WTI crude oil futures remain under pressure; creates a narrow range in near term.
WTI futures have been holding within a consolidation area since April 18 with upper boundary the 69.35 resistance level and lower boundary the 67.10 support, while the 20- and 40-simple moving averages in the 4-hour chart are acting as a strong mid-level of the channel. In the short-term, the technical indicators turned their momentum to negative.
Looking at momentum oscillators though, they suggest further declines may be on the cards in the short-term. The RSI is below its neutral 50 line, detecting negative momentum, and is also pointing downwards. The MACD, already negative, lies below its trigger line.
In case of further declines in the oil and a slip below the lower band, immediate support may be found near the latest lows at 65.55. A downside break of that zone would open the way for the April 5 peak of 64.00.
However, if buyers manage to push the price above the moving averages, it could challenge the upper boundary of the trading range of 69.35, increasing the probability for further bullish extensions. A potential upside violation of this level would open the way towards the 70.00 handle.
It is worth mentioning that WTI crude oil has been developing within an uptrend since June 2017, hitting several times the medium-term ascending trend line.
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