WTI oil futures for June delivery held the reins above the support of 62.80, where the upper band of the Ichimoku cloud resides.
The short-term risk is looking bullish at the moment as the RSI maintains a clear positive slope comfortably above its 50 neutral mark and the MACD strengthens above its red signal and zero lines. That said, not far above, the 64.85 region had been a hurdle back in March. Therefore, a close above it is likely required to bolster the rally towards the crucial 66.57 – 67.65 zone, where the lower line of the broken channel could also act as resistance. If the bulls crawl higher, the next obstacle could be detected around 70.10, taken from the limitations during the period of June – October 2018.
In the event the bears take over around 64.85, the spotlight will fall again to 62.80, a break of which is expected to pause around the 20-day simple moving average (SMA) and the 60.00 round-level. A step lower may face the risk of an outlook deterioration below the floor of 57.40.
In brief, WTI oil futures point to more recovery in the short term, with the conformational signal expected to come above 64.85.
