WTI oil futures trades sideways in the near-term; bullish mode in the long-term.
West Texas Intermediate (WTI) crude oil futures have been moving sideways since the bounce off the 68.50 resistance level, which overlaps with the 38.2% Fibonacci retracement level of the down-leg from 75.24 to 64.40. In the short-term, the RSI indicator is pointing upwards in the negative zone, while the blue %K line of the stochastic oscillator posted a bullish cross with the red %D line, signaling upside tendency in the 4-hour chart.
An extension to the upside and above the 68.50 resistance area could meet the 40-simple moving average (SMA) in the near term at 68.80. Further up, resistance could be found at 69.50, which is marginally below the 50.0% Fibonacci of 69.80. More advances could drive the oil until the 61.8% Fibonacci of 71.10.
If the price weakens and slips below 66.95, it could touch again the long-term ascending trendline near 66.00. Even lower, the 65.70 support level could attract greater attention as any leg below the diagonal line could create a bearish outlook, opening the way towards the 64.40 level.
To summarise, WTI crude looks neutral in short-term, while in the long-term picture is seen bullish since June 2016.
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