Commodities

Technical Analysis – WTI futures rises near 19-week high

Posted on July 22, 2020 at 12:18 pm GMT

Christina Parthenidou, XM Investment Research Desk

WTI futures are advancing towards a fresh 19-week high of 42.27 today, experiencing a new bullish rally after the neutral mode of the previous sessions. The RSI is extending its upside move towards the overbought territory, while the MACD is strengthening its upside momentum above its trigger and zero line in the 4-hour chart.

If prices continue to head higher, resistance should come from the 43.60 level, taken from the inside swing low on March 2 ahead of the 200-period simple moving average (SMA) in the daily timeframe. A break above this crucial line could send the commodity towards the 48.80 barrier, registered on March 3.

However, should a downside reversal take form, immediate support would likely come from the 41.60 level. Even lower, the market could shift the bias back to a neutral one, testing the lower surface of the Ichimoku cloud, which overlaps with the 40.15 support. Clearing this zone could open the door for the 200-period SMA at 39.35 in the 4-hour chart, ahead of the 38.93 obstacle.

In brief, oil futures are extending a bullish session, suggesting the start of a new upside path in the short-term timeframe.

WTI

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