Technical Analysis – WTI oil futures hold above 80.00
WTI futures rebound from a 3-week low
Next target for the bulls is the July peak of 84.50
Momentum indicators are cautiously tilted to the upside
WTI oil futures (August delivery) had been in a steady uptrend since early June before experiencing a pullback following their rejection at a fresh two-month high of 84.50. Although the price fell to its lowest level in three weeks, it quickly bounced back as the 80.00 psychological mark acted as a strong floor.
Should the latest uptick strengthen, immediate resistance could be found at 84.69, which is the 61.8% Fibonacci retracement of the 67.97-95.02 upleg. Conquering this barricade, the bulls may attack the April peak of 86.90. If that hurdle also fails, attention might turn to the 78.6% Fibo of 89.23, a region that provided solid resistance in October 2023.
On the flipside, bearish actions could send the price lower to test the 50.0% Fibo of 81.50 ahead of the recent three-week low of 80.20. A violation of that region could bring the 38.2% Fibo of 78.30 under scrutiny. Failing to halt there, the price may descend towards the 23.6% Fibo of 74.35.
In brief, WTI oil futures managed to erase a significant part of their short-term slide after finding support near the 80.00 psychological mark. However, a break above 84.50 is needed to signal the continuation of the uptrend in place since early June.
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