WTI crude oil futures confirmed the double bottom pattern at 10.00 after the jump above the 38.2% Fibonacci retracement level of the downward wave from 54.70 to 6.75 at 18.03. The upside tendency in the short-term has now shifted to neutral over the last sessions, remaining below the 61.8% Fibo of 25.00.
If the price jumps above the latter level the way would open for the 26.70 resistance barrier – taken from the latest high – and the 30.00 round number, confirmed by the RSI indicators which is slightly pointing up in the 4-hour chart. Above these levels, the gap from March 9 at 34.00-41.20 would be recouped if the commodity rises higher.
In the negative side, immediate support could be faced from the 20-period simple moving average (SMA) at 24.33 and the 40-period SMA, which currently stands at 23.28. Marginally below this line, the 22.90 barrier and the 200-period SMA at 21.90 could come into focus ahead of the 50.0% Fibo of 21.53. The MACD oscillator is endorsing this view losing its momentum in the positive area.
Overall, the technical indicators are supporting an opposite view and the market has been in a narrow range since May 5. A decisive close above the 26.70 peak could be a sign of the continuation of the short-term bullish picture.
