- WTI crude oil still above SMAs
- RSI and MACD indicate weakening momentum
WTI crude oil futures are continuing to bounce off the 72.45 support level, remaining in an upside mood, but the current very short-term view is neutral. The price stands above the 81.90 support level after the bullish crossover within the 20-, 50- and 200-day simple moving averages (SMAs).
According to technical oscillators, the RSI is still standing above the 50 level but is pointing south, while the MACD is developing above its trigger and zero lines. Both indicate weakening momentum in the near-term.
Rising further, the bulls may find immediate resistance near the 84.50 barricade before traveling towards 85.90 and the previous peak of 86.92.
In the event of a potential downside retracement, the first support for traders to look for is 81.90 before meeting the 20-day SMA near the 80.20 mark. More declines could take the price towards the 200-day SMA at 78.80 before changing the outlook to neutral.
Overall, oil prices have been rising over the past month, but a rise above 86.92 is required to confirm a positive outlook for the overall picture.
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