WTI oil futures (October delivery) could not pick up any rewards this week, remaining trapped between the 20- and 50-day simple moving averages (SMA) at 67.46 and 69.62 respectively.
The technical picture displays a neutral-to-bullish short-term bias as the MACD is looking to flourish within the positive area, while the RSI is extending its zigzag move above its 50 neutral level.
Hence, traders will be focused on a possible extension above the 50-day SMA before they raise their buying orders. In this case, a decisive close above the tentative descending trendline seen around the 71.00 number and the 61.8% Fibonacci retracement of the latest downleg at 71.50 could add more credence to the rally, pushing resistance up to the 78.6% Fibonacci of 73.00. Running higher, the next stop could be somewhere between 74.20 and 74.85, taken from the highs on July 30 and July 13, respectively.
On the flip side, a downside reversal below the 20-day SMA and the 38.2% Fibonacci of 67.22 could prompt fresh selling, likely towards the 23.6% Fibonacci of 65.18, unless the 66.00 handle comes to counterbalance downside pressures. Even lower, the price could stabilize around 66.62 as it frequently did in the first half of the year before heading for the 61.77 trough.
In summary, WTI oil futures could track a neutral-to-bullish movement in the near term. A clear step above 71.50 is expected to boost buying appetite, while a drop below 67.22 may reduce exposure in the market.
