West Texas Intermediate (WTI) crude oil futures seem to have lost momentum since hitting the 75.24 multi-year high on July 3. Price action is at the moment taking place above the 20- and 40-simple moving averages in the 4-hour chart after they recorded a bearish cross but are currently pointing up.
Looking at momentum indicators, the RSI is lacking direction slightly above it neutral threshold of 50, suggesting that the market could keep consolidating in the near term. The MACD also supports this view in the positive territory but is currently embraced by its red trigger line.
If prices continue to head higher, resistance should come from the high of 75.24, identified by the July 3 top. A jump above this level would reinforce the medium-term bullish view and open the way towards the 161.8% Fibonacci extension level of 78.70 level of the downleg from 72.89 to 63.37.
However, should a downside reversal take form, immediate support will likely come from the 72.20 level. A break below this region would push oil prices towards the 71.00 handle.
When looking at the bigger picture, oil recorded the third bullish week in a row, following the rebound on the 63.37 barrier, signaling further gains in the next few sessions.
