WTI crude oil futures surged to its highest level since November 2014 around 77.00 before returning all of today’s gains. The steep rising trend line is holding well as the price has been continuing the aggressive buying interest since May 21 in the medium-term.
Looking at the technical indicators, the MACD is losing some momentum, crossing below its trigger line in the positive area, while the RSI is edging lower from the overbought territory.
Should selling forces strengthen, the 74.43 support, which overlaps with the 40-period simple moving average (SMA) and the uptrend line may come under the spotlight. The 72.00 handle could initially turn support to keep the bias on the neutral-to-positive bias. Moving lower, the 70.75 support could next add some footing ahead of the 200-period SMA at 70.18.
Alternatively, a close above the more than 6½-year high would brighten the outlook even more, pushing the price towards the inside swing low of 79.17, which was tested in October 2014.
In brief, oil prices are facing a weakening bullish bias, where a drop below 72.00 and the 200-period SMA is expected to enhance selling interest.