WTI oil futures’ upside momentum is looking feeble as the price of the commodity retreated beneath the Ichimoku lines for a second time, ever since logging a 33-month peak just shy of the 77.00 handle. That said, the steadily advancing simple moving averages (SMAs) are defending the broader uptrend, while the flattening Ichimoku lines are indicating dwindling in the price’s bullish drive.
The short-term oscillators are suggesting negative momentum is gaining pace. The MACD, in the position zone, is deviating further below its red trigger line, while the diving RSI has plunged into bearish territory. Moreover, the stochastic oscillator has recently regained a negative charge and is endorsing a rise in downside price pressures.
If sellers remain in the driver’s seat, they could swiftly encounter a support base constructed between the July 8 trough of 70.76 and the June 17 low of 69.54, an area which also encapsulates the 50-day SMA. Should bearish forces continue to grow, the bears may then face the challenging border of 66.42-67.96, which overlaps with the Ichimoku cloud and is receiving reinforcements from the 100-day SMA lingering just beneath.
Otherwise, if buyers find traction off the 69.54-70.76 area, initial upside constraints could develop in the vicinity of the Ichimoku lines at 72.79 and 73.83 respectively. Exceeding these averages, the price may then meet the 75.47 high, while any overshoot of this level could inspire buyers to pilot for the 76.87-77.77 resistance section that also contains the multi-year peak of 76.96. In the event WTI futures remain buoyant, the price may hurl towards the 79.77 border, observed in November 2014.
Summarizing, WTI futures’ bigger picture remains relatively bullish above the SMAs and the 61.54 trough. That said, the near-term snapshot signals waning in positive impetus and a breach of the nearby support foundation of 69.54-70.76, could impair the positive outlook.
