WTI oil futures edge higher but struggle to overcome 50.0% Fibonacci.
West Texas Intermediate (WTI) crude oil futures traded sharply higher today after 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. However, oil prices have been developing within a sideways range with the 69.80 resistance level as an upper boundary and lower boundary the 68.50 support.
In the short-term, the RSI indicator is pointing upwards in the positive 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 69.80 resistance area could meet the 61.8% Fibonacci of 71.09. Further up, resistance could be found at 71.40, identified by the high on September 4. However, the short-term neutral would change only if the price climbs above the aforementioned obstacle.
If the price weakens and slips below the moving averages and the 68.50 support barrier, it could move towards the 23.6% Fibonacci, which coincides with the 66.95 level. 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 the short-term, while in the long-term picture, it has been bullish since June 2016.
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