- WTI oil futures continue to flatline near a critical support area
- Bullish trend reversal is a long way above 77.80
WTI oil futures kept their footing above the 67.00-68.00 support region for the third time since the current sideways trajectory began in September. This base has been a strong source of buying in 2021 and 2023 too. Hence, as long as it holds, there’s hope for a bounce back.
But excluding the recent green bullish doji candlestick and the oversold signals coming from the Stochastic oscillator, there are barely any signs of buying enthusiasm. The simple moving averages (SMAs) are still pointing down, and both the RSI and MACD are hovering in the bearish zone, showing that downward pressure is still very much in play.
If the 67.00 floor collapses, the price may seek shelter near the important 64.00 zone, which triggered September’s bounce and helped the bulls twice in 2023. If that doesn’t hold either, we could see a retest of the 2021 base at 61.50. Another failure there could make things get ugly fast, shifting the spotlight straight to the 56.40-57.30 area.
In the event the price crawls above the 69.00-70.00 range and breaks through the 20- and 50-day SMAs, the 72.00 area could block any increases toward the 74.00-75.00 region. A continuation higher could bode well for the market, though for the short-term picture to start looking bullish again the price must close decisively above the 200-day SMA and then rise sustainably above the 2023 resistance trendline at 77.80.
In short, WTI oil futures are at a critical crossroads at the moment. A slip below 67.00 could spell trouble, while a move above 77.80 could upgrade the outlook back to bullish.
