WTI crude oil futures have found a strong support level at the one-year low of 70.15, sending the price higher towards the 20-day simple moving average (SMA).
The price remains well below the medium-term descending trend line with the technical indicators suggesting some contradicting signs. The MACD is standing above its trigger line in the positive region, while the stochastic is advancing in the overbought region. However, the RSI is ticking marginally down near the neutral threshold of 50, confirming today’s bearish start.
In case of more losses, immediate support is being provided by the one-year trough of 70.15 before the price tumbles towards 65.87, registered in December 2021. Should prices dip lower again, the next support would likely come from the 62.30 barrier, achieved in November 2021.
In case of an upward attempt, oil prices would likely meet resistance at the 50-day SMA currently at 82.80 ahead of the 83.55 hurdle and the downtrend line at 84.70. A break above these lines would ease the downside pressure, while a climb above the 92.30 level would help turn the short-term bias to a bullish one, breaking the 200-day SMA at 95.00.
In the medium term, the bearish outlook remains intact, with the moving averages all pointing downwards. However, should prices move above the falling trend line and the 200-day SMA, this would risk shifting the medium-term picture to a more bullish one.
