WTI Futures Create Downside Rally Towards Long-Term Ascending Trend Line

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West Texas Intermediate oil futures plunged over the last sessions, moving towards the long-term ascending trend line in the 4-hour chart. Also, they hold below the 20- and 40- simple moving averages (SMAs), while the technical indicators are confirming the recent negative structure in the near-term. The RSI indicator is pointing south, having just fallen below the 30 oversold zone, and the MACD oscillator just recorded a bearish cross with its trigger line.

Should the price manage to strengthen its negative momentum and post a significant leg lower, the 50.0% Fibonacci retracement level of the upleg from 58.15 to 76.90, around 67.50, could be the next support level to have in mind. A break below this area could drive prices towards the 66.95 support, which stands near the rising trend line. A negative rally below this line, could shift the long-term bullish outlook to a more neutral one, hitting the 65.70 barrier.

On the flipside, if prices rebound and surpass 68.50, the 38.2% Fibonacci of 69.70 could come in focus again. Further advances could drive oil until the 69.90 resistance and then at the 70.64 hurdle, taken from the low on October 12.

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To summarize, WTI crude looks bearish in the short-term, while in the longer-term picture, it has been strongly positive since February 2018.