WTI oil futures held in a narrow range; bullish bias in the near term.
WTI oil futures have been trading above the short-term ascending trend line in the 4-hour chart but are consolidating in a narrow range over the last couple of weeks. The three-and-a-half month high of 57.85 acts as the
Currently, the price remains below the 20- and 40-simple moving averages (SMA) with very weak momentum. The technical indicators are supportive of this view as the RSI is neutral marginally below the 50
In case of a successful penetration to the downside of the diagonal line and the 55.00 level, oil prices would switch the bullish bias to a more neutral one, resting at the 23.6% Fibonacci retracement level of the upward movement from 42.50 to 57.78 around 54.18. More downside extension could push the price until the 53.50 support, while even lower it could touch the 52.10 level and the 38.2% Fibonacci of 52.00.
In the alternative scenario, a bullish rally could find immediate resistance near the 40- and the 20-SMAs but a jump above them could send prices until the 57.85 – 58.15 resistance area. More advances could drive WTI until 59.90 taken from the bottom on March 2018.
Overall, the short-term bias is in a bullish correction mode after the rebound from the 18-month low and a successful close above 57.85 could endorse this view.
All trading involves risk. It is possible to lose all your capital.
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.