WTI oil futures found some traction off the flattening red Tenkan-sen line at 63.54, reviving the commodity’s positive drive. The commanding bullish tone of the simple moving averages (SMAs) is preserving the uptrend. Furthermore, the Ichimoku lines are endorsing positive momentum with the red Tenkan-sen muting the pullback from the 28½-month high of 67.96.
The short-term oscillators are reflecting mixed signals in directional momentum but appear are leaning to the upside. The MACD is far above the zero mark and has nudged back above its red trigger line, while the RSI is pushing higher in the bullish territory. The stochastic oscillator is sustaining a negative charge, promoting the latest fall in the price, however if the bulls continue to gain ground it could realign with the improving picture.
If the current trajectory gains pace, initial resistance could develop in the region of 67.96-68.53, the former being the multi-year peak recently reached. Successfully resuming the climb, the resistance band of 69.87-70.49 could then come into play, which if overrun as well could catapult the price to challenge the limiting zone of 72.41-73.06.
Otherwise, if sellers dip the price beneath the static red Tenkan-sen line at 63.54, the blue Kijun-sen line at 61.74 could try to impede the retreat from falling further. Failing to do so, the neighbouring section of support from the level of 59.98 until the 58.58 low, the former being the 23.6% Fibonacci retracement of the up leg from 34.02 until 67.96, could dismiss the decline.
Summarizing, WTI futures’ maintains a strong bullish tone above the Ichimoku lines and the 58.58-59.98 support zone. In order to cause serious implications for oil, the price would be required to retrace beneath the region from the 38.2% Fibo of 54.99 until the 53.92 level.
