West Texas Intermediate (WTI) futures surged to a fresh high of 74.80 since November 2014 as it is recording a sharp bullish run over the last five days. Prices broke above the 72.20 level and are trading above their moving averages. The bullish picture in the short term is kindly supported by the technical indicators.
From the technical point of view, in the 4-hour chart, the RSI is holding slightly above the 70 level, suggesting an overstretched rally, while, the MACD oscillator is moving above the zero line but is losing some of its strong momentum.
In the event of an extension of the bullish bias, the 161.8% Fibonacci level of the downleg from 72.87 to 63.37, near 78.70, is the next strong resistance hurdle to have in mind. There are no significant obstacles before that barrier.
In case of a bearish correction, the 20-simple moving average (SMA) would act as support level near 73.53. A break below this level would turn investors’ attention to the downside until the 72.20 support, identified by the June 28 lows.
To sum up, the crude oil futures in the bigger picture, recorded two straight positive weeks, following the rebound on 63.37. Furthermore, in the daily chart, the 20- and 40-SMAs are ready to post a bullish crossover.
