Since its deep fall towards a two-month low of 38.15 earlier today, WTI crude oil futures have been trading within a descending movement after the pullback from 43.77. The technical picture supports a bearish structure in the short-term timeframe.
Looking at momentum indicators, the RSI is holding in the oversold zone with weak momentum, while the stochastic oscillator posted a bearish crossover within its %K and %D lines and is moving lower towards the 20 line.
In the wake of more negative pressures, the market could meet support at the 37.46 barrier, taken from the low on June 25 before hitting the 37.07 level.
On the flip side, a move to the upside above 38.54 – 38.74 could see immediate resistance at the red Tenkan-sen line at 39.30 but should the market increase positive momentum above this area, the 40.15 resistance, which overlaps with the 20-period simple moving average (SMA) could be the next level in focus. Above this barrier, resistance could be found at the 40.83 hurdle.
Turning to the medium-term picture, the market seems to be in a neutral-to-bearish mode given that the commodity trades below the 200-period SMA.
Origin: XM
