WTI crude oil futures have recently bounced off the 200-day simple moving average (SMA) at 78.00, indicating a strong support level. This level has been crucial in providing both resistance and support from January to March, showcasing its importance in the current price action.
Uptrend Since Mid-December
The price of WTI crude oil has been in an uptrend since mid-December, with technical oscillators pointing towards a neutral to bullish bias. The Relative Strength Index (RSI) is trending north above the 50 territory, while the Moving Average Convergence Divergence (MACD) is moving sideways below its trigger line and above the zero level.
Despite the strong support at the 200-day SMA, WTI oil futures are struggling to break beyond the 80.80 resistance level. If the market gains momentum, the 80.80 level could offer nearby resistance, with the 83.60 barricade posing as a significant hurdle. A breakout above 83.60 would open the doors for further increases, with the 85.90 level becoming a key target.
On the downside, immediate support is expected around the 200-day SMA at 78.00. A break below this level could lead to further downside movement towards the 75.80-76.80 support region, which includes the short-term ascending trend line. A drop below this level could shift the outlook to a neutral one, with the possibility of prices reaching 70.60.
WTI crude oil futures are currently finding strong support at the 200-day SMA while facing resistance at the 80.80 level. The uptrend since mid-December and the technical indicators suggest a potential for further upside momentum. However, the market needs to break above key resistance levels to confirm a bullish continuation. On the downside, a break below the support levels could change the outlook to neutral. Traders and investors should closely monitor price action at these critical levels to gauge the future direction of WTI crude oil futures.
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