WTI Crude Oil Recoups Bearish Gap – What’s Ahead?
2024.11.01 04:45
- WTI crude oil runs to 71.00 critical level near downtrend line
- Momentum oscillators reflect positive bias
prices recovered the bearish gap that was created in the preceding week and is currently testing the medium-term downtrend line near 71.00.
The price has added more than 6% over the last couple of days with the technical oscillators mirroring the latest upward wave. The MACD oscillator jumped above its trigger line beneath the zero area, while the stochastic is heading north after the bullish crossover within its %K and %D lines above the 20 zone.
An extension to the upside and above the 71.00 key level could meet the area between the 20- and the 50-day simple moving averages (SMAs) at 71.80. Further up, resistance could run towards the 72.95 bar, which is taken from the latest high. Steeper increases could also reach the 76.65 hurdle ahead of the significant flat 200-day SMA at 77.60.
On the other hand, if the commodity weakens, the 67.00 round number could provide immediate support ahead of the 17-month low of 65.70. Even lower, the April 2023 trough at 63.60 could attract a greater attention as any leg lower could worsen the market’s bearish outlook.
Regarding the medium-term picture, given that bearish sentiment deteriorated after the downfall toward 65.70 only a move above 78.75 could now help the market return to neutrality.
