- WTI crude oil futures find resistance at 38.2% Fibo
- Hold in consolidation area 55.35-64.17 in short-term
- Technical oscillators point down
WTI crude oil futures have found significant resistance at the 38.2% Fibonacci retracement level of the down leg of 79.40-54.70 once again, sending the price to the 61.50 support.
From a technical standpoint, the RSI indicator is sloping down, crossing the neutral threshold of 50 to the downside, while the stochastic posted a bearish cross between its %K and %D lines in the overbought territory. Both indicate negative momentum in the market.
More downside pressures could lead the commodity to the 23.6% Fibonacci of 60.50 before challenging the crucial support region of 54.70-55.35. A dive below these lines could send investors to the 54.00 key level which is the 61.8% Fibonacci mark of the up leg 6.60-130.50, and a break lower could endorse a strong bearish tendency in the long-term view.
On the other hand, a rebound off 61.50 may take traders to the 50-day simple moving average (SMA) near 64.17 again, before challenging the crucial 65.00 resistance. Even higher, the 50.0% Fibonacci of 67.00 could prove to be tough resistance.
To conclude, WTI crude oil futures have been in a sideways movement over the last five weeks with the broader outlook remaining bearish.