WTI futures hold their gains above SMAs and near 83
WTI crude oil futures are edging higher, finding support at the 20-period simple moving average (SMA) in the previous session, with the next target coming from the seven-year high of 83.86.
According to the technical indicators, the RSI indicator is moving upwards in the positive region, while the %K and %D lines posted a bullish crossover above the 20 level. Both are suggesting more bullish action in the market. Moreover, the price is currently testing the red Tenkan-sen line and any attempts beyond this line could endorse the bullish bias again.
The multi-year high of 83.86 could act as immediate resistance, before the price meets the September 2014 inside swing low of 89.55.
It is possible that a decline below the short-term simple moving averages (SMAs) could push prices down to the 79.10 support level, which coincides with the lower channel boundary and is just above where Fibonacci's 23.6% retracement of the upward wave from 61.75 to 83.86, which is located at 78.67. If the bears continue to suffer losses, they may be able to push the price down to 76.20.
To sum up, oil prices have been in an ascending channel since August 23 and this aggressive positive view will only change if there is a drop below the 200-period SMA at 74.44.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
