WTI traded lower yesterday, after it hit resistance at 76.82. That said, the slide was stopped today, during the Asian morning, near the 73.80 level, with the price rebounding somewhat. Overall, WTI remains above the upside support line drawn from the low of August 22nd, as well as above the prior downside resistance one, taken from the peak of July 6th. Therefore, we will consider the near-term outlook to still be positive.
If the bulls are willing to stay in the driver’s seat, we could see them challenging again the 76.82 zone, and if they manage to overcome it, they will enter territories last tested back in 20214. The next resistance may be the high of November 10th, 2014, at 79.77, the break of which could pave the way towards the 82.96 hurdle, marked by the high of October 29th, 2014.
Our short-term oscillators suggest that the price may have started, or is about to start, gaining upside speed again, which add credence to the view of a trend continuation. The RSI rebounded back above its 50 line, while the MACD, although below its trigger line, shows signs of bottoming within its positive territory.
The outlook may change to negative, if we see a dip below 69.85, near the lows of September 20th and 21st. The price will already be below the upside line drawn from the low of August 22nd, and may encourage declines towards the 67.59 barrier, marked by the low of September 9th, the break of which cold carry extensions towards the low of August 9th, at 65.25. If the bears are not willing to stop there either, then we could experience extensions towards the 62.00 territory, marked by the low of August 20th.
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