Commodities

Technical Analysis – WTI futures surge to 1-year high; back to positive view

Posted on February 2, 2021 at 10:24 am GMT

Melina Deltas, XM Investment Research Desk

WTI crude oil futures rose to a fresh one-year high of 54.41 earlier today, continuing the strong rebound off the short-term uptrend line. The simple moving averages (SMAs) are returning higher, while the RSI is approaching the overbought territory. Moreover, the MACD is extending its positive momentum above its trigger and zero lines.

Traders would be eager to engage in more buying activities if the price manages to surpass today’s high and move towards the nearby resistance at 54.62, registered in February 2020. More gains could lead the commodity until the 57.58 barrier, taken from the inside swing low from January 2020.

Alternatively, a decline below the 53.54-53.92 support could send the price towards the SMAs, which are standing near the Ichimoku cloud at 52.75. Even lower, the ascending line at 52.30 could come into play next ahead of a significant leg to 51.45. Below that, the neutral bias would take hold again, meeting the 49.50 support.

Overall, WTI is advancing, confirming the bullish bias in the short- and long-term timeframes.

WTI crude

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