Commodities

Technical Analysis – WTI futures tick higher but needs some more fuel

Posted on August 11, 2020 at 9:09 am GMT

Melina Deltas, XM Investment Research Desk

WTI crude oil futures are moving higher, surpassing the 20- and 40-period simple moving averages (SMAs) in the 4-hour chart and the Ichimoku cloud. The RSI indicator is edging higher above the 50 level, while the MACD oscillator jumped above its trigger line, suggesting more gains in the short-term.

An upside movement could reach immediate resistance at the 42.60 barrier before making a sustained rally towards the five-month peak of 43.48. Clearing this zone, the market could hit the 48.80 barrier, registered on March 2.

On the other hand, a decline below the 20-period SMA could open the way for the 40-period SMA currently at 41.53. Even lower, the 41.05 support and the lower surface of the Ichimoku cloud could provide a significant obstacle for the bears.

In the very short-term timeframe, the price is heading higher after the rebound on the 41.05 line. However, over the last week the tendency is not clear following the touch on the five-month peak.

Overall, in the bigger picture, WTI crude oil futures has been in a bullish move since June 25.

crude oil

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