FOREX Oil

WTI Futures Weaken Their Bullish Move Above SMAs

WTI crude oil futures have found resistance at the 41.60 barrier, sending prices sideways in the short-term. Oil is keeping its position above the moving averages despite the contradicting signals in the momentum indicators. The MACD is holding beneath its trigger line in the positive territory, while the RSI is pointing marginally up in the bullish region.

In case of more upside pressures and a successful climb above the immediate resistance of 41.60, the next hurdle would come from the 61.8% Fibonacci retracement level of the down leg from 65.68 to 6.70 at 43.04. Breaching this line, the 48.80 barrier and the 54.60 resistance could be in focus, taken from the peaks on March 3 and February 20 respectively.

On the other hand, a decline beneath the 20-day simple moving average (SMA) could shift attention to the 50.0% Fibonacci of 36.18. Below that the 40-day SMA and the 34.65 level are the next supports, while the 200-day SMA currently at 33.06 could attract attention. More downside pressures could open the door for the 30.85 support ahead of the 38.2% Fibonacci of 29.16.

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Summarizing, the commodity has been in an upside tendency since April 21, while a jump above 65.68 could shift the longer-term picture to bullish as well.

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