Commodities

Technical Analysis – WTI crude oil futures see bullish bias with scope to extend higher

Posted on February 21, 2018 at 1:31 pm GMT

Melina Deltas, XM Investment Research Desk

WTI crude oil futures have been underperforming since yesterday’s trading period, however over the last few hours they are trying to gain some ground. In the short-term timeframe, the technical indicators seem to be in confusion as they are giving signals for opposite tendency.

In the 4-hour chart, the MACD oscillator is falling in the positive zone below its trigger line, approaching the zero line. However, the stochastic oscillator recorded a bullish crossover in the oversold territory, suggesting a retracement of the bearish bias.

If price action climbs above the 20-day simple moving average near 61.72 at the time of writing, immediate resistance could come at 62.60, slightly above the 50.0% Fibonacci retracement level at 62.27 of the down-leg from 66.60 to 58.00. The price tested several times the latter obstacle as it is acting as significant resistance barrier. Clearing this level could see additional gains towards the 64.30 resistance barrier but first prices need to successfully surpass the 61.8% Fibonacci level at 63.30

On the flip side, should price extend their losses, the next support level to have in mind is the 60.70. In case of a fall below that barrier, oil could hit the 23.6% Fibonacci mark around 60.00.

commodities WTI crude

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