WTI Futures Shows Improvement Near 99.00

Technical analysis of Forex market

WTI crude oil futures are posting notable gains around the 99.00 mark, remaining well above the short-term simple moving averages (SMAs) and the uptrend line. The MACD continues to strengthen to the upside and above its red signal line while the RSI is sloping north in the bullish area, supporting the current view as well.

Another step higher may reach a key resistance at 99.00, where the price stopped in the previous sessions. Should this prove a weak obstacle, the selling could pick up speed until the almost eight-year high of 100.49, where any violation would bring more pressure to the market with the price probably stretching further up to test the 107.62 barrier, registered in June 2014.

Alternatively, immediate support could come from the 23.6% Fibonacci retracement level of the up leg from 81.90 to 100.49 at 96.11 before the focus shifts to the 20-period SMA at 95.48 and the 94.40 level. Lower, the 40-period SMA at 93.74 and the 38.2% Fibonacci at 93.40 could also restrict bearish movements. Though, only a close below the ascending trend line would confirm the start of a sideways move.

In the medium-term picture the pair is still increasingly bullish as long as it holds well above the uptrend line and more importantly above the 200-period SMA, which is still rising.