WTI futures tick up after bouncing off 50-SMA
WTI oil futures (June delivery) have been in a constant uptrend since bottoming out at 69.97 in December, posting a fresh six-month peak of 86.90 on April 12. Despite experiencing a pullback from its highs, the price managed to find its feet at the 50-day simple moving average (SMA) and recoup some losses.
Should the rebound resume, immediate resistance could be found at 84.69, which is the 61.8% Fibonacci retracement of the 95.02-67.97 downleg. Jumping above that zone, the price may challenge the recent six-month peak of 86.90. Even higher, the 78.6% Fibo of 89.23 could prevent further upside attempts.
Alternatively, bearish actions could send the price lower to test the 50.0% Fibo of 81.50, a region that the price has repeatedly violated in the past few sessions but has failed to close below it. Further retreats could then cease at the 38.2% Fibo of 78.30. Failing to halt there, the price may descend towards the 23.6% Fibo of 74.35.
In brief, although WTI futures underwent a setback, they quickly regained traction following the deflection at the 50-day SMA. Hence, a resumption of the recent rebound remains the most likely scenario as the momentum indicators are tilted to the upside.
US NFP Sparks Hawkish December Fed Expectations
Gold: Yet Not Broken
Gold: Yet Not Broken
The dollar is capitalising on its competitors' weakness
Margin calls in crypto, but this is unlikely to be the bottom
US jobs data paint mixed picture, Katayama talks intervention
Gold Treads Water Amid Mixed Signals
