WTI crude oil futures have reversed back to the upside, flirting with the 200-day simple moving average (SMA) and the short-term MAs as well as the Ichimoku cloud. The price rebounded on the 36.00 psychological mark and the MACD oscillator posted a bullish crossover with its trigger line in the negative territory. Although the RSI challenged the 50 level, it failed to surpass it and is ticking down.
An extension to the upside, climbing above the SMAs, immediate resistance could come from the 43.67 barrier. More gains could lead the oil until the 48.80 barrier and the 54.62 level, taken from the highs on March 3 and February 20, respectively.
In the negative scenario, a downfall below the lower surface of the cloud could hit the 34.44 – 36.00 support area before challenging 30.59. Marginally below this line, the 28.08 support could come in focus before plunging to 18.24.
Concluding, WTI futures have been in a neutral-to-bullish structure since April 20 and any increases above the 43.67 significant resistance level, could turn the commodity to a strongly positive view.
Origin: XM
