West Texas Intermediate (WTI) futures are developing below the 65.70 strong resistance area over the last four trading days but successfully surpassed the mid-level of the Bollinger band, this being a 20-period-simple moving average (SMA) in the 4-hour chart.
The RSI is hovering around the 50 neutral-perceived area, pointing to the absence of momentum in either direction in the short term, for the most part. Turning to the stochastics, it is of note that the green %K line is looking set to post a bearish crossover with the %D line, something which if indeed takes place would constitute a bearish signal in the very short term.
If the price shifts above the 65.70 resistance level, which overlaps with the upper Bollinger Band, it would challenge the 23.6% Fibonacci of the downleg from 75.24 to 64.40, near 66.95. A move above this level and traders could look for resistance at the 68.35 barrier, which stands slightly below the 38.2% Fibonacci mark.
Conversely, a decline could find support at the 20-SMA, around 65.22. If the bearish moves appear stronger, the price could hit the 64.40 support, identified by the August 16 trough. A failure to hold above this level could open the door for the 64.37 hurdle, taken from the low on June 18.
It is worth mentioning that oil prices have been moving within a descending movement since July 3 after they hit 75.24, their highest since late 2014
