WTI Crude Oil Futures Trade around 2-month High; Strongly Bullish in Long-Term

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Staff member
West Texas Intermediate (WTI) futures reached a fresh more than two-month high of 72.70 in Monday’s session. Price action is at the moment taking place not far below this peak, while it is holding well above the simple moving averages (SMAs) in the 4-hour chart.

In the short-term, the MACD oscillator is moving slightly higher in the positive zone, while the blue %K line of the stochastic oscillator posted a bullish cross with the red %D line, signaling upside tendency in the 4-hour chart.

An extension to the upside and above the two-month high (72.70) resistance area could meet the next immediate barrier of 72.94. If there are further advances, resistance could be found at 74.80, identified by the high on July 5.

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If the price weakens and slips below the 71.40 support, it could slip until the 23.6% Fibonacci retracement level of the upleg from 64.40 to 72.70, near 70.76. Even lower, the 70.00 strong psychological level could attract greater attention.

To summarize, WTI crude looks bullish in the short-term again, while in the long-term picture, it has been strongly positive since June 2016.