- WTI crude oil meets 70.00 level
- Remains in trading range in short-term
- Broader outlook is still bearish
WTI crude oil prices have seen a notable bullish reaction during yesterday’s session, almost testing the medium-term descending trend line near 70.40. The commodity has battled several times with the diagonal line over the last month, but it is still holding within a sideways channel since October 14.
If the price has a successful upside attempt beyond the 50-day simple moving average (SMA) at 70.75, then it may test the upper boundary of the range at 72.95. Even higher, the market would fight with the 200-day SMA at 76.65.
On the other hand, a potential decline could send traders toward the previous low of 67.00, ahead of the 17-month trough of 65.70. A move below this area would endorse the longer-term bearish outlook.
The technical oscillators are confirming the upside move, with the MACD extending its positive momentum above its trigger line and the stochastic heading toward the overbought area.
All in all, WTI crude oil needs a sustained bullish boost to exit from the consolidation area in the near term, and the broader bearish outlook is still in place.
