Commodities

Technical Analysis – WTI futures retreat slightly below ascending line; bias bullish

Posted on December 8, 2020 at 9:27 am GMT

Melina Deltas, XM Investment Research Desk

WTI crude oil futures pulled below the nine-month high of 46.67 and slightly under the short-term rising trend line in the 4-hour chart.

The MACD oscillator is holding beneath its trigger line in the positive region, while the RSI indicator is flattening near its neutral threshold of 50. In trend indicators, the 20-period simple moving average (SMA) seems to be capping upside movements, favoring additional losses in the near term.

If the bears take control, immediate support could come from the 40-period SMA near the 45.26 barrier. Beneath the latter, the price could take a rest around the lower surface of the cloud near 43.89, before touching the 43.32 and the 42.65 levels.

On the flip side, an upside extension could take oil towards the nine-month high of 46.67 and then towards the 48.80 resistance, taken from the high on March 3.

Summarizing, WTI futures maintain an upward move in the near term despite the latest correction below the ascending trend line.

WTI

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