- WTI crude oil finds resistance at 200-day SMA
- Stochastics and RSI head south
WTI crude oil futures with delivery in July have failed to surpass the 80.00 level once again and are currently returning below the 200-day simple moving average (SMA). The price has been developing within a narrow range of 76.58-80.00 since the beginning of the month.
According to the technical oscillators, the RSI indicator is falling from the overbought region, while the stochastic oscillator is ready for a bearish crossover within its %K and %D lines near the 80 level, both indicating a bearish retracement.
If the market retreats further, immediate support could come from the medium-term ascending trend line around the 77.50 support level. Steeper decreases could open the way for a retest of the 76.58-75.80 region, but more downside pressures could open the door for a negative correction until 71.50.
On the flip side, a successful climb above the 80.00 handle and the 50-day SMA at 81.27 could drive the commodity towards the 84.45 resistance. Even higher, the almost six-month high of 87.00 is waiting to halt the upside movements.
Summarizing, WTI oil is looking neutral in the short-term view, but the broader outlook is still bullish as it is standing above the uptrend line.
. The price has been developing within a narrow range of 76.58-80.00 since the beginning of the month.){kind=link}