Commodities

Technical Analysis – WTI futures suggest further gains in near term; bullish crossover within SMAs completed

Posted on July 24, 2018 at 12:36 pm GMT

Melina Deltas, XM Investment Research Desk

WTI futures have been in a flying mode today in the short-term timeframe as it surpassed the 20- and 40-simple moving averages (SMAs). The price rebounded on the 67.56 key level, so, having all these in mind, the outlook seems to be cautiously positive.

Looking at the 4-hour chart, the technical oscillators are giving signs that the latest run may continue for a while more. The RSI turned up after it jumped above its 50 line, however, the MACD has flattened near its zero and trigger lines. Moreover, the moving averages completed a bullish crossover, indicating a bullish bias.

If the bulls manage to take charge for further upside potential move, then the next resistance could likely come from the 69.24 barrier. A break above this level would confirm a forthcoming higher high in the near term and may pave the way towards the next obstacle of 71.61.

On the flip side, a clear dip below 67.56 would bring the oil price lower until the 66.33 support level, which stands near the long-term ascending trend line. Further downside extensions may shift the bigger bullish picture to bearish and hit the 64.30 hurdle.

Overall, having a look at the long-term timeframe, crude oil has been developing within a rising movement during the last year.

commodities WTI crude

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