- WTI crude oil tests 77.70 support
- Price holds beneath SMAs
- RSI and MACD indicate more losses
WTI crude oil futures have been in a bearish movement after the pullback off the 84.70 resistance level. It has since slipped below the simple moving averages (SMAs) in the daily timeframe and the market is currently testing the 77.70 support level before diving towards the long-term ascending trend line near 74.80. A successful break beneath this region could open the door for more losses until the 72.70 barricade.
The technical oscillators are confirming the recent bearish movement in price. The RSI is heading south beneath the neutral threshold of 50, while the MACD is extending its bearish structure below its trigger and zero lines.
Alternatively, a climb above the 200- and 50-day SMAs could allow traders to reach the 80.50 resistance level before resting near the 20-day SMA at 81.64. Above them, the 84.70 resistance is waiting to act as a turning point again.
In summary, oil prices look bearish in the near term; however, the bigger picture is still bullish as long as they are standing above the uptrend line.
Source by: XM Global