WTI Crude Oil Futures Face Resistance at 38.2% Fibonacci Level
In the short-term, WTI crude oil futures are holding in a consolidation area between 55.35 and 64.17. Technical oscillators are pointing down, indicating a negative momentum in the market.
The futures have encountered significant resistance at the 38.2% Fibonacci retracement level, leading to a drop towards the 61.50 support level. The RSI indicator is sloping down and crossing below the neutral threshold of 50, while the stochastic has shown a bearish cross in the overbought territory. Both signals suggest a bearish trend in the market.
If downside pressures persist, the commodity could target the 23.6% Fibonacci level at 60.50 before testing the crucial support zone of 54.70-55.35. A break below these levels could push the price towards the key support level of 54.00, confirming a strong bearish outlook for the long-term.
On the upside, a bounce off the 61.50 support could lead traders towards the 50-day simple moving average near 64.17, followed by a challenge of the 65.00 resistance level. Further resistance lies at the 50.0% Fibonacci level of 67.00.
In summary, WTI crude oil futures have been trading sideways in recent weeks, with a bearish outlook prevailing in the broader context. Investors should closely monitor key support and resistance levels to gauge the future direction of the market.