WTI crude oil futures are easing near the short-term simple moving averages (SMAs), which are ready to post a bullish crossover. The broader outlook is still bearish as the price remains beneath the long-term descending trend line.
Technically, the stochastic oscillator is heading south after the pullback from the overbought region, while the RSI is moving lower, approaching the neutral threshold of 50. Both are indicating more bearish actions in the near term timeframe.
If the market dives beneath the SMAs then immediate support level could come from the 72.45 barrier, ahead of the one-year low of 70.15. Further decreases could open the door for the December 2021 trough of 65.87.
On the flip side, a climb beyond the 81.45 resistance level and the descending trend line could meet the next obstacle at 83.55, while another key level at 92.30, which overlaps with the 200-day SMA, may halt the positive move.
Summarizing, oil prices are in a bearish mode; however, any moves above the downtrend line and the 200-day SMA may switch the picture to bullish.
