WTI crude oil futures have been in a flying mode since yesterday’s trading session, recording a new four-month high around 59.32 today. The price is set to touch overbought levels according to the RSI indicator which is holding a shy below the 70 level, while the MACD is ready to post a bullish crossover with its trigger line in the 4-hour chart. Moreover, the price is hovering well above the Ichimoku cloud.
Another positive extension could find resistance at the 61.45 barrier, where the market topped on November 2018, increasing bullish sentiment in the short term. More upside pressures could drive the commodity towards the next hurdle of 63.20, taken from the peak on November 2018.
In case of a successful penetration to the downside of 59.21, oil prices could rest near the red Tenkan-sen line and the 20-simple moving average (SMA) around 58.60. Even lower, the next stop could be around the 40-SMA and the 57.70 support level, while deeper the price could touch 57.51, the 23.6% Fibonacci retracement level of the upleg from 51.60 to 59.31.
Overall, the market is in an ascending tendency over the last month following the rebound on the 51.60 support barrier.
