Bearish pressure on WTI oil futures prices has eased as RSI has moved out of oversold territory, off 30 and is heading towards 50.
Prices have risen above the 200-day moving average which increases the potential for further upside moves. However, the market has fallen below the rising trend line (that started from January) and this will now act as immediate resistance to the upside.
There is a cluster of resistance levels starting at around $46.70 (trendline) and at $47.30 (50-day moving average). The market would have to clear these resistance levels in order for the short-term bias to turn bullish. Also RSI would have to rise above 50.
To the downside immediate support lies at the 200-day moving average around $44.20 and below this the key $43.00 level will likely act as strong support since this zone has been tested several times. A break below this support would bring $40.00 into view, another important support level, which is the August low and is crossed by the trend line.
If the market moves below $40, this would shift the medium-term neutral bias to a bearish one. A move above $47.30 would shift the market structure to a bullish one.
Interested in DB WTI technicals? Check out the key levels
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