WTI oil futures’ upward thrust from the 14-week low of 62.42 is looking vulnerable as it confronts a critical resistance border formed between the 73.00 and 75.00 handles. That said, the most recent push higher in the price of the commodity seems to have neutralized the growing threat of a negative trend, something also being reflected in the steadier 50- and 100-day simple moving averages (SMAs).
The short-term oscillators are indicating that current bullish forces may not be sufficient to boost upside momentum further. The MACD, in the negative region, has climbed above its red trigger line but remains far below the zero level. The RSI is starting to roll over ahead of its 50 level, showing that negative pressures have yet to fully subside. Moreover, in the overbought zone, the stochastic %K line is hinting that the upward drive may be weakening.
In the positive scenario, an immediate tough section established between the 73.00 and 75.00 handles could curb gains in the commodity. That said, if the price surpasses this important border, reinforced by the mid-Bollinger band and the 100-day SMA, buyers could propel higher for another limiting zone marked by the 50-day SMA at 78.00 and the 79.31 barrier. Conquering these and the adjacent 80.66 high, the bulls may then seek out the upper Bollinger band around 83.28 before targeting the seven-year high of 85.39.
If advances remain capped, preliminary support could arise around the 200-day SMA at 70.12 and the nearby 69.18 obstacle. If bearish powers intensify, the price may dive for the 65.59 and 64.42 neighbouring barriers prior to meeting the lower Bollinger band at 63.80. Should sellers remain in charge, they could then test the 14-week trough of 62.42 before challenging the 60.61-61.77 support base.
Summarizing, WTI futures short-term neutral-to-bullish tone is showing weakness at the 73.00-75.00 key resistance. A break above this could feed optimism in the commodity, while a break below the key 60.61-61.77 foundation may spark worries about the broader uptrend.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.