Technical Analysis – WTI oil futures challenge 61.8% Fibo
WTI futures break above crucial trendline and 50-day SMA
Next target is the 61.8% Fibo, which held strong in January
Momentum indicators tilt to the positive side
If bullish pressures persist, oil might challenge the 61.8% Fibo of 75.97, a level that curbed the price’s recovery in December. Conquering this barricade, the bulls could attack the 50.0% Fibo of 79.61. Further upside moves could then stall around the 38.2% Fibo of 83.25.
On the flipside, should the price reverse back below its 50-day simple moving average (SMA), the 78.6% Fibo of 70.80 could act as the first line of defence. A successful break below that zone could pave the way for the 66.95-68.00 support range defined by June lows and the recent six-month bottom. Failing to halt there, the price may face the 2023 low of 64.20.
In brief, WTI oil futures have been steadily gaining ground in the near term, attempting to extend their short-term recovery. For that to happen, the price needs to initially jump above the crucial 61.8% Fibo of 75.97.
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