Technical Analysis – WTI crude oil erases gains below 80.00
WTI crude oil finds resistance at 200-day SMA
Stochastics and RSI head south
WTI crude oil futures with delivery in July have failed to surpass the 80.00 level once again and are currently returning below the 200-day simple moving average (SMA). The price has been developing within a narrow range of 76.58-80.00 since the beginning of the month.
According to the technical oscillators, the RSI indicator is falling from the overbought region, while the stochastic oscillator is ready for a bearish crossover within its %K and %D lines near the 80 level, both indicating a bearish retracement.
If the market retreats further, immediate support could come from the medium-term ascending trend line around the 77.50 support level. Steeper decreases could open the way for a retest of the 76.58-75.80 region, but more downside pressures could open the door for a negative correction until 71.50.
On the flip side, a successful climb above the 80.00 handle and the 50-day SMA at 81.27 could drive the commodity towards the 84.45 resistance. Even higher, the almost six-month high of 87.00 is waiting to halt the upside movements.
Summarizing, WTI oil is looking neutral in the short-term view, but the broader outlook is still bullish as it is standing above the uptrend line.Related Assets
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