WTI futures capped by 20-day SMA but remains in ascending move

WTI crude oil futures are declining below the 20-day simple moving average (SMA) after the pull back from the 123.50 resistance level. The price has been developing within an uptrend line over the last two months while the technical indicators are mirroring the latest descending move. The RSI indicator is moving sideways near the neutral threshold of 50, and the MACD is falling below its trigger line.

More downside pressures may meet immediate support around the 111.10 barrier, which overlaps with the uptrend line and the 40-day SMA. Should the price retreat further, the 103.24 barrier could come under speculation.

In the positive scenario, the commodity could improve above the three-month high of 123.50 to challenge a stronger resistance around the almost 14-year high of 130.50. The 147.00 area, however, which strictly capped bullish over the past 14 years, remains the big highlight.

In brief, WTI futures are expected to pause the north-run in the very short-term, while in the medium-term, buying interest could advance if the market confirms a jump above the three-month high and the 14-year peak.

About the author

Melina Deltas

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. Her technically focused method looks mainly at price action across multiple time frames to capture big moves that develop over the years. She has more than 3 years of experience in analyzing financial markets, specializing in forex, indices, and commodities. Melina studied Pure Mathematics at Lancaster University and has a Master's Degree in Monetary and Financial Economics from the University of Cyprus. Currently, she is an associate member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).