- WTI Oil futures turn higher after reaching 70 zone.
- Technical signals reflect persisting caution.
- Bullish outlook could emerge above 74.00-74.88.
WTI oil futures have been in decline for three weeks, shedding 6% since January’s peak of 79.36. Tuesday’s sharp pullback drove the price to 70.66, but fresh buying interest at a key trendline from the 2023 high helped lift it back above the 50-day simple moving average (SMA).
Technically, downside risks persist as the RSI and MACD continue to slow. However, the RSI is nearing a key pivot zone, and the stochastic oscillator, despite losing momentum, still holds a positive trajectory, leaving room for a potential rebound.
The 74.00-74.88 region, formed by the 200- and 20-day SMAs and key resistance lines, remains a significant barrier. A decisive breakout above this zone could trigger a rally towards 76.20, aligning with the 38.2% Fibonacci retracement of the 2023-2024 downtrend. Further gains could target 77.20 and 78.50, with the 50% Fibonacci retracement at 79.80 acting as the next ceiling.
Conversely, a drop below the 50-day SMA and the 71.80 support area, which overlaps with the 23.6% Fibonacci level could bring the 70.00-70.50 zone back into focus. A deeper decline may test 68.30, while a break below 66.70 would send stronger bearish signals.
WTI oil futures continue to face a blurry outlook after three weeks of losses. A strong move above 74.00-74.88 might be crucial to shifting momentum in favor of the bulls.
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