WTI crude futures develop in a narrow range after strong sell-off.
West Texas Intermediate (WTI) crude oil futures have turned neutral after a strong downfall in the previous weeks. The price struggles within a narrow range, with upper boundary the 54.40 resistance level and lower boundary the 50.00 level. Currently, the price remains below the 20- and 40-simple moving averages (SMAs) and the technical indicators hold in
If the price exits from the trading range and dives below the 50.00 level, it could touch the 49.40 barrier, reached on November 29. Another significant stop for bears could come around the 47.76 hurdle, identified in September 2017.
However, in case of an upward movement, the oil price could approach the 20- and 40-SMAs around 51.82 and 52.39 respectively. A climb above these lines could push the market until the upper boundary of the consolidation area of 54.40, while a break above it could challenge the 23.6% Fibonacci retracement level of the downleg from 76.90 to 49.40, near 55.85.
Overall, WTI crude is still developing in a strong bearish tendency following the bounce off the 76.90 resistance. In the very short-term picture though, the market is neutral.
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