WTI crude oil futures are coming close to break the ten-week high of 34.63, surpassing the 20- and 40-period simple moving averages (SMAs).
The short-term upside tendency has begun from April 28 and is support by an ascending trend line and the bullish crossover of the SMAs. According to the technical indicators, the RSI is extending its upside momentum, while the MACD is ready to jump above its trigger line in the bullish region.
In case of steeper increases the commodity could re-enter the gap from March 9, hitting the 36.22 resistance and the 41.20 barrier. Even higher, the 43.65 inside swing low since March 2 could attract attention, endorsing the positive bias.
Alternatively, if there is a drop below the SMAs and the rising trend line, that could send prices to the 30.57 support level before touching the 23.6% Fibonacci retracement level of the upward wave from 10.00 to 34.63 at 27.87. Clearing this zone, the 26.70 – 28.11 support area could come into play ahead of the 38.2% Fibonacci of 25.22, which stands near the 200-period SMA.
Overall, WTI futures are in an upside tendency and only a significant close beneath the ascending line could shift the bias to neutral.
Origin: XM
