Commodities

WTI futures maintain bearish bias below downtrend line

WTI crude oil futures are easing near the short-term simple moving averages (SMAs), which are ready to post a bullish crossover. The broader outlook is still bearish as the price remains beneath the long-term descending trend line.

Technically, the stochastic oscillator is heading south after the pullback from the overbought region, while the RSI is moving lower, approaching the neutral threshold of 50. Both are indicating more bearish actions in the near term timeframe.

If the market dives beneath the SMAs then immediate support level could come from the 72.45 barrier, ahead of the one-year low of 70.15. Further decreases could open the door for the December 2021 trough of 65.87.

On the flip side, a climb beyond the 81.45 resistance level and the descending trend line could meet the next obstacle at 83.55, while another key level at 92.30, which overlaps with the 200-day SMA, may halt the positive move.

Summarizing, oil prices are in a bearish mode; however, any moves above the downtrend line and the 200-day SMA may switch the picture to bullish.

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).