WTI futures were in a high-flying condition in the previous days, recording a fresh 32-month peak of 72.81. The price is trading above the support line drawn from the low in April 2020, with the outlook remaining cautiously optimistic.
If the bulls can gain control towards the 72.81 top, a significant rally until the inside swing high at 75.24, registered in July 2018, may take place. A break above the aforementioned level could open the door for the next obstacle at 76.87, being the high from September 2018.
The daily oscillators show some signals that the recent pullback could last a bit longer. The RSI dropped after hitting the 70 line, while the MACD, though being above both its zero and trigger lines, is also showing signs of topping out.
On the flip side, a clear break below 67.96 would take oil towards the 40-day simple moving average (SMA) at 66.24, which holds marginally above the long-term ascending trend line. Before assessing if the bulls have abandoned the battlefield, the market needs to penetrate the diagonal line. Such a fall might lead to a more negative extension and open the way to the next support at 60.66 and the 23.6% Fibonacci retracement level of the upward wave from 6.62 to 72.05 at 57.20.
All in all, WTI futures are creating an ascending tendency in the short- and long-term timeframes.
