WTI oil futures (July delivery) have been in a sustained uptrend since the 92.60 region rejected any further dip, generating a profound structure of higher highs and higher lows. Moreover, the ascending 50- and 200-day simple moving averages (SMAs) endorse the commodity’s positive bearing.
The momentum indicators suggest that bullish forces are in control. Specifically, the stochastics are charging higher in the overbought zone, while the MACD histogram has crossed above its red signal line in the positive region.
To the upside, immediate resistance could be encountered at the most recent peak of 114.90. Slashing through this region, the price might ascend towards 116.60, a violation of which would pave the way for the 6½-year high of 130.50. Further up, the 2018 resistance of 193.88 could prove a tough obstacle for the bulls to overcome.
Alternatively, should positive bias wane and the price reverse downwards, the 108.50 hurdle could act as the first line of defence. Breaching this region, the spotlight may turn to 101.20 before the 97.00 barricade appears on the radar. Failing to halt there, the bears could then aim at 92.60, which has rejected further declines multiple times in 2022.
In brief, WTI futures appear to have the necessary momentum to resume their long-term upside trajectory. Nevertheless, a break beneath the 92.60 floor could turn its short-term picture back to bearish.