Technical Analysis – WTI crude oil gains some ground within trading range
WTI crude oil futures' price is gaining some ground after the strong bounce off the lower boundary of the trading range of 72.45-82.60. The price is battling with the 20- and the 50-day simple moving averages (SMAs) and given that it is still below the long-term falling trend line, the outlook remains gloomy.
The stochastic oscillator is moving towards the overbought area, while the RSI is flattening near the neutral threshold of 50, so both are suggesting that the price may show some short-term? weakness.
If the market breaks down through the 50-day SMA, the 72.45 level could act as a temporary support level, just above the yearly low of 70.15. The December 2021 low of 65.87 might be reached in case of more declines.
On the other hand, if prices are able to break above the SMAs and the downtrend line, they may hit the upper boundary of the channel at 82.60. Moving higher, the 200-day SMA at 90.43 may halt the bullish actions, while traders could flirt with 92.30, shifting the outlook to positive.
In a nutshell, WTI futures are in a neutral mode in the medium-term timeframe and bearish in the long-term view. This outlook may change only if there is a jump beyond the 200-day SMA.
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