WTI oil futures drift higher, crucial barriers on sight

WTI oil futures (December delivery) have been experiencing a prolonged decline since mid-June, while their two latest rebounds fell short at the lower boundary of the Ichimoku cloud. However, the commodity seems to be gaining some ground after encountering strong support at 81.30, with the price now aiming for the 50-day simple moving average (SMA).

The momentum indicators currently suggest that the bullish forces are strengthening. Specifically, the stochastic oscillator is ascending after rebounding from the 20-oversold zone, while the RSI has jumped above its 50-neutral mark.

Should buying pressures intensify, the price could ascend towards the recent rejection point of 92.30. Conquering this barricade, the bulls might aim for the August peak of 97.50, which overlaps with the 200-day SMA. A break above the latter could open the door for the 102.00 ceiling.

To the downside, if the positive momentum wanes and the price retreats again, initial declines could cease at the recent support region of 81.30. Dipping beneath that zone, the spotlight could turn to the nine-month low of 76.25. Even lower, the December low of 66.10 may provide further downside protection.

Overall, WTI oil futures are attempting a recovery in the last couple of daily sessions as positive momentum appears to be intensifying. For those efforts to materialize, the price needs to initially jump above the congested region that includes the 50-day SMA and the lower boundary of the Ichimoku cloud.

About the author

Stefanos Oikonomidis

Stefanos bergabung XM sebagai Analis Junior pada September 2021. Ia melakukan riset pasar harian pada mata uang, komoditas dan pasar ekuitas, dari perspektif fundamental dan teknis. Sebelum bergabung di XM, ia memperoleh wawasan berharga dengan bekerja sebagai Pekerja Magang Risiko Kredit di bank besar Yunani.

Stefanos meraih gelar Master di bidang Finansial dari Warwick Business School dan gelar Sarjana di bidang Akuntansi dan Finansial dari Athens University of Economics and Business. Ia percaya bahwa untuk menjadi sukses di industri, Anda harus bisa mengidentifikasi kekuatan pendorong di balik setiap pergerakan pasar, dan dibahas secara jelas dengan para pembaca.