WTI Technical Analysis

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WTI oil futures push above the ruling mark of 43.76 appears to be fading from its recently recorded eight-and-a-half-month high of 46.22. Although the positive signals remain present, the bullish sentiment appears to be stumbling before reaching the resistance level of 46.80. The currently paused Ichimoku lines still convey a positive tone, while the 50- and 100-day Simple Moving Averages (SMAs) communicate a neutral to bullish result.

Short-term oscillators reflect deteriorating positive momentum and suggest that a pullback could develop. That said, the MACD is north of the zero level and remains above its red trigger line, while the RSI is falling after bouncing off the 70s barrier. Also, located in overbought territory, the stochastic% line K appears to be falling below its% D line, suggesting a pullback in price, although this negative support has yet to be fully confirmed.

If selling interest grows, strong initial support can develop from the key limiting section of 42.65-43.76, which also contains the Tenkan-sen red line. Successfully returning below this, the retracement may find a strengthened support zone from the 100-day SMA at 40.83 to the internal high of 39.66. Passing through this congested region, which includes the 50-day SMA, the Kijun-sen blue line, and the Ichimoku cloud, black gold may test the low of 37.39 and the adjacent 200-day SMA at 36.49.

Heading above the previous candle high of 46.22, the commodity may receive early resistance from the 46.80 barrier. By passing this mark, buyers can aim to challenge the critical resistance band of 48.80-49.29. If successful, your focus may shift to handle 51.00.

In summary, oil is maintaining its short-term neutral to bullish behavior above the SMA and the 42.65-43.76 zone.

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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