WTI futures are facing some difficulty to surpass the 23.6% Fibonacci retracement level of the up leg from 34.02 to 85.50 at 73.26 and are moving sideways around the 20-day simple moving averages (SMAs) in the short-term.
Technically, the MACD oscillator is rising above its trigger line in the negative region, while the RSI is flattening around the 50 level.
If the pair jumps above the 23.6% Fibonacci of 73.26 ahead of the lower boundary of the Ichimoku cloud which overlaps with the 40-day SMA at 75.75, it could touch the 79.76 resistance. Moving higher the seven-year high of 85.50 may halt the bullish actions
On the flip side, a drop below the 200-day SMA may open the door for the 38.2% Fibonacci of 65.77 and then for the latest three-month low of 61.85. Slightly lower, the bears may meet the 50.0% Fibonacci of 59.66 and the 61.8% Fibonacci of 53.65.
All in all, the oil may return to bullish actions if there is a penetration of the 23.6% Fibonacci of 73.26 and the 40-day SMA. Though, a slip below the three-month low may switch the outlook to bearish.
