WTI oil futures have shifted to a bullish phase and are making a steady recovery after breaking above the key 50.00 level. On the 4-hour chart, the crossover of the 20-period moving average above the 50-period MA highlights the bullish bias. Momentum indicators are positive.
The rise from the October 6 low of 49.07 is still in progress but the market will likely remain in a range between 51.60 and 52.33 in the near-term. Immediate support is at 51.60. This is expected to act as strong support since this level has provided both support and resistance in the recent past. There is scope to target the September 28 high of 52.83 and from here there would be a resumption of the broader uptrend that started from the 42.00 area.
Breaking below support at 51.60 would shift the focus to 50.00 and another drop would dampen the bullish view. Support at 49.07 comes into sight and any further weakness would increase downside pressure for a move towards 47.00. Below this, the 45.56 low is the next support which if broken would likely bring about a sustained move lower.
Overall, risk is titled to the upside but for now, WTI oil futures are expected to trade between 51.60 and 52.33 until upside momentum picks up. The 4-hour RSI has lost upside strength but remains in bullish territory above 50, while the MACD is rising.
