WTI continues to climb higher
|WTI crude oil traded higher today, after it hit support at 86.65 yesterday. Overall, the black liquid continued to trade above the upside support line taken from the low of December 20th, and as long as this is the case, we will hold a bullish stance.
At the time of writing, WTI is trading near yesterday’s high of 88.45, showing some signs that it might correct lower for now. However, if the setback stays limited near the aforementioned upside line, we would see decent chances for a rebound and a test at the 90.70 zone, defined as a resistance by the high of October 7th. If the bulls are not willing to stop there, a break higher could see scope for advances towards the high of September 30th, at 94.80.
Shifting attention to our short-term oscillators, we see that the RSI lies near 70, but it has ticked down, while the MACD lies above both its zero and trigger lines. Both indicators detect upside speed, but the fact that the RSI turned down adds some credence to our view that a small setback may be looming before the next leg north.
In order to start examining the bearish case, we would like to see a clear dip below the 83.35 barrier, marked by the low of January 25th. This could initially target the low of January 13th, at 81.35, or the 80.52 barrier, marked by the inside swing high of January 7th. If neither barrier is able to stop the bears, then we could see them marching towards the 77.85 or 76.75 zones, defined by the lows of January 10th and 6th, respectively. Another break, below 76.75 could carry extensions towards the low of January 3rd, at 74.27.
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