WTI Oil futures swing within neutral triangle [Video]
|-
WTI Oil futures extend horizontal move.
-
Resistance at 73.85; support at 69.60.
WTI oil futures (February delivery) have been in a range so far in January, printing a neutral triangle pattern at the bottom of the broad bearish channel.
Given the RSI’s continuous efforts to climb above its 50 neutral mark and the improvement in the MACD, there is a ray of hope for a bullish breakout.
Practically though, the price will have to overcome a few obstacles before the outlook shifts to the bullish side. Specifically, it will first need to climb above the upper band of the downward-sloping channel at 73.85, where the 50-day simple moving average (SMA) is positioned. Then, a close above the 75.40 constraining zone would violate the short-term neutral trajectory, opening the door for the flattening 200-day SMA at 77.40. A decisive extension above the latter would brighten the outlook, clearing the way towards the 80.00 round level.
In the event the price pulls lower, it may retest the triangle’s lower band at 70.50 and perhaps touch the tentative ascending line from the 2020 low seen at 69.60. Failure to bounce there could prompt a fast decline towards the May-June floor of 66.95. If selling forces persist, the downtrend could reach the 2023 bottom of 64.20 and then the 62.00 mark.
In brief, WTI oil futures provide no clear signals about the next move in the price as long as they fluctuate within the 69.60-73.85 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.