West Texas Intermediate (WTI) futures have been in a flying mode today, hitting the bearish cross of the 20- and 40-simple moving averages (SMAs). The price has pared some of the previous days’ losses and the momentum indicators are suggesting more gains. The RSI indicator entered the positive territory, while the MACD oscillator is strengthening below the zero line.
If prices continue to head higher immediate resistance would come from the latest high of 75.15. A jump above this barrier would turn the focus higher again towards the almost four-year high of 76.90, achieved on October 3.
On the downside, if the price tumbles below the 23.6% Fibonacci retracement level of the upleg from 64.40 to 76.90, around 73.94, it could open the door for the 72.70 – 73.00 support region. Steeper losses could drive the commodity until the 38.2% Fibonacci mark of 72.12, before challenging the short-term ascending trend line.
To summarize, WTI crude looks bullish in the short-term again, while in the long-term picture, it has been strongly positive since January 2016.
