WTI futures reached another almost one-year high of 56.31 yesterday as the commodity extended its bull run above the 53.94 strong level. The bullish picture in the medium term is further supported by the MACD, which is rising and above its trigger line. Also, the RSI is holding in the overbought zone, suggesting a possible downside retracement.
To the upside, there is immediate resistance at the 57.40-59.64 area, while above that, the next major resistance to watch is the 65.61 barrier, taken from the high of January 2020.
Should prices reverse lower, immediate support could come at 53.94 and the 20-day simple moving average (SMA) around 53.20. A drop below this level would take the price closer to the 40-day SMA at 50.79. Further losses would open the way towards the 49.40 hurdle, which overlaps with the ascending trend line. A breach of this level would shift the outlook from positive to neutral, hitting the 46.13 support and the 23.6% Fibonacci retracement level of the upward wave from 6.62 to 56.31 at 44.63.
Summarizing, oil prices stretch the positive outlook above the rising trend line, continuing the long-term view.
