Technical Analysis – WTI oil futures hit an 11-month high
WTI futures climb to their highest level since August 2022
Advance shows no signs of easing so far, bulls eye crucial 100 psychological mark
But RSI, stochastics and Bollinger bands point at overbought conditions
WTI oil futures (November delivery) have been in a steady advance since July, climbing to an 11-month peak of 95.02 in today’s session before paring some gains. However, the momentum indicators are currently deep in their overbought territories, suggesting that the recent rally could be overstretched.
Should the bulls attempt to push the price higher, initial resistance could be found at the August 2022 peak of 97.80. Further advances could then cease at the July 2022 resistance of 102.00. Piercing through that wall, oil prices may then challenge the June 2022 hurdle of 114.00.
On the flipside, if the bears emerge and push the price lower, the recent support of 88.20 could act as the first line of defence. Sliding beneath that floor, the commodity could decline towards the April resistance of 83.40, which may serve as support in the future. A violation of that territory could open the door for the August low of 77.60.
In brief, WTI oil futures have been exhibiting persistent strength, recording consecutive multi-month peaks. Nevertheless, a downside correction should not be ruled out as the latest advance has reached overbought conditions.
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