Commodities

Technical Analysis – WTI crude oil find immediate obstacle at 42.90

Posted on August 18, 2020 at 12:46 pm GMT

Melina Deltas, XM Investment Research Desk

WTI crude oil futures have found significant resistance at the 42.90 barrier over the last couple of weeks. The technical indicators are showing mixed signals as the RSI is pointing slightly down, while the MACD completed a bullish crossover with its trigger line above the zero line. The Ichimoku lines and the moving averages are still signaling a somewhat upside tendency in the 4-hour chart.

In the wake of positive pressures, the market could meet resistance at the five-month high of 43.48 before it heads higher to 48.80, taken from the peak on March 3.

On the flip side, a move to the downside could see immediate support at the 20-period SMA at 42.40 but should the market increase negative momentum below this area, the upper surface of the Ichimoku cloud at 42.09 could be the next level in focus. A stronger barrier, though, could be found at 41.45 since any strong violation of this point could increase chances for further losses probably towards the 200-period SMA around 41.05.

In the very short-term timeframe, the price has been in a neutral phase due to the strong obstacle at 42.90.

Turning to the medium-term picture, the market seems to be in bullish mode given that the commodity trades above the 200-period SMA.

WTI

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