WTI technical analysis: Bulls charge 1% to 63.50 to test 200-4HR SMA
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- WTI has rallied 1% at the open today on a series of provocative Iran headlines from the weekend and last week along with Saudi Energy Minister Khalid al-Falih indicating there was consensus among OPEC and allied oil producers to continue limiting supplies.
- The price has taken out the 20 and 50 4HR MAs, the 17th May low at 62.51 and 26th April lows at 62.26 respectively and has pierced the 63.44 fractal lows as well, testing the 200 4HR SMA.
- WTI has hit the 63.50s on the opening spike, supported from the golden cross (50/200 DMA cross-over) where it coincides with the 23.6% Fibo, late Dec-late April range, and ascending channel support.
- Daily MACD and Stochastics had been turning more positive, and there is an upside bias on the medium term.
- However, the 4HR time frame was a little more complex as momentum indicators were only just being relieved from overbought readings, but the price is now testing the said 200-4HR SMA at 63.18. A close above here opens the next levels to target.
- Beyond a prior resistance at 64.75, the next significant upside target comes in at 65.70 (fractal low) then 66.58 as the 2019 highs which meets a series of historical support and resistance levels.
- A break there opens the 68 levels fractal targets guarding a break towards the 72.80-127.20% Fibo extensions around at 73.20 window.
- On the flip side, 62.09 14th May fractal high, or, the 62.18 9th May fractal highs could be a support level
- A break below channel support and the golden cross opens risk all the way down to 57.80 and the 61.8% Fibo around 57.30. 54.50 and the 50% retracement of 2019 range come in next.
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