- WTI crude attempts to surpass 74.00
- Immediate resistance near 200-day SMA
- Stochastic looks overbought
WTI crude oil futures are battling with the 74.00 round number, within a downward sloping channel that has been drawn since September 28.
Technically, the MACD is advancing above its trigger line in the negative territory, while the stochastic oscillator is still standing near the 80 level, indicating that the market may be in an overbought territory.
Steeper increases could penetrate the descending channel to the upside, heading towards the flat 200-day simple moving average (SMA) at 77.56, which also lies near the 50-day SMA. Even higher, the bulls may test the 80.00 handle, adding some optimism for more bullish actions.
On the flip side, a failure to surpass the 74.00 barrier could take the market beneath the 20-day SMA, resting near the 67.90-67.10 support. A dive below this restrictive region could confirm the bearish structure taking the price towards the 64.20 support, taken from the low on May 4.
To sum up, oil prices are showing some signs of a bullish correction but they need to climb above the channel and the 200-day SMA.
