West Texas Intermediate (WTI) futures are on course for the second day of gains, which have driven the price towards the upper boundary of the narrow range with a resistance level of 67.30 and support barrier of 65.75. The trading range has been standing since Monday while the oil dropped below the 67.30 hurdle and started a sideways move.
The RSI is currently increasing positive momentum towards its neutral threshold of 50 after an exit from oversold levels, while the MACD is rising in the negative territory, both hinting that the next move in prices could be on the upside rather than on the downside. Furthermore, the stochastics indicate that a rebound is not far off since the oscillators are nearing overbought levels. Still, this is more likely to happen when the % K line forms a bullish cross with the %D line.
If the price bounces up and surpasses the upper boundary, immediate resistance could be at the 67.60 barrier. A significant leg above this region could send prices towards the 40-simple moving average in the 4-hour chart, currently at 69.56.
Conversely, should the market extend losses, support could be met near the 65.75 obstacle, which holds near the ascending trend line. Steeper decreases, though, could drive WTI south towards the 64.00 handle, shifting the bullish medium-term outlook to bearish.
Overall, crude oil started an aggressive bearish run over the previous week, however, the price has managed to hold above the ascending trend line that has been developing since February 8.
