Commodities

Technical Analysis – WTI crude futures stands above 23.6% Fibonacci; slightly bullish

Posted on May 21, 2019 at 9:00 am GMT

Melina Deltas, XM Investment Research Desk

West Texas Intermediate (WTI) crude oil futures returned back above the 23.6% Fibonacci retracement level of the upleg from 51.60 to 66.60, around 63.0, holding above the red Tenkan-sen line and the 20-simple moving average (SMA) in the 4-hour chart. The stochastic oscillator is approaching the overbought levels, giving signals for more upside pressure, however, the RSI indicator is flattening in the positive area.

Should the price edge higher, positive momentum could probably last until the 63.95 strong resistance obstacle. Beating this top, the door could open for the 64.80 barrier before challenging the six-month high again.

On the downside, the 23.6% Fibonacci mark of 60.90 and the 20-SMA could act as significant support levels. A failure to hold above these lines could strengthen the sell-off towards the 40-SMA currently at 62.40 and the lower surface of the Ichimoku cloud near 61.80.

In brief, WTI oil futures are looking slightly positive in the short-term thanks to the climb above the 23.6% Fibonacci.

commodities WTI crude

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