West Texas Intermediate (WTI) crude oil futures edge sharply higher, recording a new multi-year high of 72.70 during Tuesday’s early European session. The price jumped above the previous peak of 72.30 and the short-term technical indicators are endorsing the bullish scenario.
From the technical point of view, the MACD oscillator climbed above its trigger line and is rising with strong momentum, while the ROC oscillator stands above the neutral area and is sloping to the upside. Moreover, the 20- and 40-simple moving averages (SMAs) are holding below the price action, signaling further upside potential move in the short and medium term.
A move to the upside again could touch the 73.30 resistance level, taken from the low on November 2014. A strong barrier, though, could be found at the 75.00 handle, identified from the September 2011 low. It is worth mentioning that, the psychological levels of 73.00 and 74.00 could act as significant obstacles for the bulls as well.
In the event of a slip below the 72.30 support level would open the door for the immediate support level of 71.00. A successful close below this level could see a re-test of the previous lows of 70.25.
Overall, crude oil started an aggressive bullish run over the last three weeks, recording a stunning rally, while the price has been developing in an ascending movement since February 8.
