- WTI oil retains upward move
- Bulls may retry push higher, but resistance still nearby
WTI oil futures could not sustain strength above June’s broken support trendline at 87.50 on Wednesday despite a flash spike to 88.55. The 23.6% Fibonacci retracement of the previous uptrend also proved a heavy obstacle at 88.50.
Fortunately, the price closed marginally above its 20-day moving average (SMA) and held within the upper bullish Bollinger area, suggesting sentiment still favors the upside. The RSI has risen above its 50 neutral mark, albeit marginally, witnessing some improvement in buying appetite too.
Yet, with the stochastic oscillator hovering around its 80 overbought level and the MACD remaining within the negative zone, buyers will probably await a confirmation signal above the 88.50 barrier before boosting the price towards the 91.00-91.50 constraining zone, where the ascending line drawn from the 2020 bottom is positioned. A more aggressive bullish action could lose momentum somewhere between the tentative resistance trendline from the 2022 top at 93.70 and September’s peak of 95.00.
Otherwise, a pullback below the 20-day SMA could initially stabilize near the 50-day SMA and the 38.2% Fibonacci of 84.35. Falling lower, the bears could examine the limits within the 81.00-82.00 zone, which includes the 50% Fibonacci and the tentative ascending line from June’s low. Another defeat there could activate fresh selling towards the 200-day SMA and the 61.8% Fibonacci of 77.73.
In brief, WTI oil futures are probably looking for more wins in the short-term, but the price could trade cautiously until it successfully claims the 88.50 level.
