WTI oil futures (February delivery) have been trending lower since mid-June when the price got rejected at the 121.00 region. Furthermore, in the last few daily sessions, the commodity plummeted to a fresh one-year low of 70.30 before recouping some losses.
The momentum indicators currently suggest that bullish forces are strengthening. Specifically, the RSI has jumped above its 50-neutral mark, while the stochastic oscillator is sloping upwards after posting a bullish cross.
Should buying pressures persist, oil futures might ascend towards the recent resistance of 83.30. Piercing through this region, the spotlight could turn to the November high of 92.50. Conquering this barricade, the August peak of 97.65 may curb any further advances.
On the flipside, if sellers re-emerge and push the price lower, initial support could be met at the September low of 76.25. Failing to halt there, the bears could aim at the recent support of 73.40. A violation of that wall may trigger a retreat towards the one-year low of 70.30.
Overall, even though WTI oil futures appear to be gaining some ground after hitting a one-year low, the technical picture remains bearish. Hence, a break above the 92.50 ceiling is needed to alter the short-term outlook back to positive.