WTI futures gain some ground; SMAs create a bullish crossover.
West Texas Intermediate (WTI) crude oil futures are in progress to recover some more ground after the bullish gap that posted yesterday. The price jumped above the positive crossover within the 20- and 40-simple moving averages in the 4-hour chart, approaching the short-term descending trend line. The RSI indicator is pointing up above the 50 level, while the MACD oscillator is strengthening its upside momentum, above the trigger line.
If the price continues to move slightly higher, immediate resistance could come from the falling trend line, around 54.80. A penetration of the diagonal line could shift the bearish bias to a more neutral one, challenging the 23.6% Fibonacci retracement level of the down-leg from 76.90 to 49.40, around 55.86. More advances could send oil towards the 58.15 resistance, taken from the peak on November 16.
On the flipside, the price could re-touch the moving averages, which hover near the 52.00 level, while the 14-month low of 49.40, could be another significant stop for investors.
Overall, WTI crude has been developing in a strong bearish tendency after the bounce off the 76.90 resistance, failing to post a significant upside retracement above the downtrend line.
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