WTI oil futures are looking bullish again in the near term following last week’s sharp gains. The MACD is back in positive territory and above the red signal line. Prices are also above the Ichimoku cloud and the moving averages, underlining the bullish picture.
However, although prices reached a 17-month high of 52.38 on Monday, it is the third time since June that oil futures have met stiff resistance in the 51.50-52.50 zone. A sustained rise above 52.50 is needed to strengthen the current longer-term uptrend, which has been shallowing out in recent months. In the shorter term though, prices would need to overcome resistance at around 50.50, which is just above today’s intra-day high.
To the downside, there is immediate support at around the 49.50 area, while further down, the Tenkan-sen comes within range at 48.60. A drop below the Tenkan-sen line could intensify the decline towards the 50-day moving average (currently at 48.20) and into the Ichimoku cloud, shifting the near-term bias back to a neutral one.
Origin: XM
