WTI futures have reversed back down again after finding resistance at the 65.95 resistance level, achieved on Monday, which overlaps with the 20- and 40- simple moving averages (SMAs) in the 4-hour chart. Additionally, the price dived below the 23.6% Fibonacci retracement level of the downleg from 72.87 to 63.55, near 65.75.
Looking at momentum oscillators on the 4-hour chart, they suggest further declines may be on the cards in the short-term. The RSI is below its neutral 50 line, detecting negative momentum, and is also pointing downwards. The stochastic oscillator, already negative, posted bearish a crossover of the %K and %D lines.
In case of further downside pressure, immediate support may be found near the latest two-month low of 63.55. A downside break of that zone would open the way for the 61.77 hurdle, taken from the low on April 6.
On the flip side, if the bulls retake control, price advances may stall initially near the latest highs at 65.95. A potential upside violation of this area would retest the 38.2% Fibonacci of 67.10, which overlaps with the peak on June 14.
In the medium-term, the oil price remains in a bearish mode as the price failed to extend gains in the previous week as it completed the fourth negative session in a row.
