WTI futures are hovering above the Ichimoku cloud and the 20- and 40-period simple moving averages (SMAs), however, the technical indicators are suggesting a bearish retracement. The RSI is falling in the positive area, flirting with the 50 level, while the stochastic is heading south after the bearish crossover within its %K and %D lines.
In case oil surpasses the 40.80 resistance and the 200-period SMA, it could add some optimism for more gains to touch the 41.71 barrier. Breaching this line, the 41.71 barrier and the 42.36 mark could attract traders’ attention before moving towards the 43.57-41.77 range, which includes the five-month high.
Alternatively, in the case of a strong decline below the Ichimoku cloud and the SMAs, the market could hit 39.15 and 38.84. Marginally lower, the 38.43 support would come into view before the price edges towards 36.64 and the three-month low of 36.11.
Concluding, WTI crude oil futures are lacking direction in the short- and medium-term timeframes and only a jump above the 41.71 resistance could open the door for additional increases.
