WTI oil futures are piloting higher past the 50-period simple moving average (SMA) and the Ichimoku cloud. The recent strong rally, which began on December 3 off the 65.59 level, is extending the upside reversal from a 14-week low of 62.42 with the rising Ichimoku lines indicating that bullish forces are potent.
The SMAs continue to fall, promoting the negative picture but have yet to digest the recent buoyancy in the commodity. The short-term oscillators are favouring the upside. The MACD, some distance above its red trigger line, is powering on in the bullish section, while the RSI is soaring towards the 70 overbought level. The stochastic lines are in overbought territory and the %K line is hinting of a slight pause in bullish drive.
If buyers stay in the driver’s seat, they face an initial resistance band from 72.80 to 73.13. Overcoming this, the price may tackle the 100-period SMA at 73.78 and the nearby 74.21 barrier before it challenges the resistance border of 74.75-75.31. In the event the bulls push beyond these congested obstacles, the price could shoot for the 200-period SMA at 77.59.
Otherwise, if the 72.80-73.13 barrier cools advances, sellers may find support from the cloud’s upper band and the 71.18 level (previous resistance-now-support). Receding further, the zone from the 50-period SMA at 69.61 until the inside swing high of 69.18 could form a support base. Should selling pressures grow again, the blue Kijun-sen and adjacent 67.28 low could draw traders’ focus ahead of the 65.59 trough.
Summarizing, WTI futures are exhibiting a strong bullish tone. A break above the 74.75-75.31 boundary could significantly boost upside momentum, while a break beneath the 65.59 trough would be needed for sellers to regain the upper hand.
