WTI crude oil futures are surging towards a more-than-seven-year high of 94.90, creating the eighth consecutive green four-hour session. The price rebounded off the short-term ascending trend line with the technical indicators mirroring the aggressive bullish structure. Specifically, the RSI is picking up speed around 70 and the MACD continues to distance itself above its red signal line.
Should the price decisively close above the multi-year high, bulls could extend the uptrend towards the next resistance at 98.74, taken from the inside swing low on May 2014. Further advances above this level, could then target the area around the 100.00 round figure.
On the other hand, a decline could meet the 93.80 and the 91.70 levels ahead of the 40- and 20-period simple moving averages (SMAs) at 91.00 and 90.63 correspondingly. Slightly lower, the price could retest the uptrend line near 89.90, which the market was unable to break in the previous couple of months. More bearish movements shift the focus to the 23.6% Fibonacci retracement level of the up leg from 66.12 to 94.90 at 88.09.
To summarize, oil prices have been in a strong positive tendency in the short- and medium-term timeframes and only a move beneath the 200-period SMA may change this outlook.
