WTI crude oil futures are edging marginally lower today, following the pullback from the 3-week high of 64.20 resistance level. When looking at the bigger picture, price action maintains a bullish tone, however, a small downside retracement is possible. In the short-term timeframe, the technical indicators seem to be slightly negative.
In the 4-hour chart, from the technical point of view, the MACD oscillator is falling – though it remains in the positive zone – and is looking ready to post a bearish cross with its trigger line, while the Relative Strength Index (RSI) is falling in bullish territory.
Should prices reverse lower, immediate support could come at the 63.00 handle, which is near the 20-period simple moving average and the 23.6% Fibonacci retracement level at 62.75 of the upleg from 58.00 to 64.20. A drop below this area could take oil prices closer to the lower Bollinger band and near the 38.2% Fibonacci mark at 61.85.
To the upside, there is immediate resistance at 64.20, while in case of a climb above the next major level to watch is at 65.40.
