WTI crude oil futures found a strong obstacle at the 200-day simple moving average (SMA), failing to continue the selling interest to the downside after the fall beneath the 100.00 level.
The downside reversal in the RSI and the slowdown in the Stochastics justify the diminishing buying pressure, and both currently remain in the negative thresholds keeping the short-term risk skewed to the downside. The MACD is also comfortably within the bearish territory and is losing some steam below its red signal line losing some steam, while in trend indicators, the bearish cross between the 20- and 40-day simple moving averages (SMAs) is still a negative sign.
Should selling forces strengthen, the 200-day SMA at 93.40 will be the highlight before the market flirts with the 92.20 barrier. Moving lower, the 85.35 and the 81.92 supports would put the downside correction under examination.
Alternatively, a close above the immediate resistance of 96.90 and the short-term SMAs at 105.23 and 109.74 correspondingly will brighten the broader outlook, pushing the price towards the 113.80 key level. Beyond that, the rally may gear up to 121.00.
In brief, WTI futures are facing a weakening bullish bias, where a drop below the 200-day SMA is expected to enhance selling interest.