After rebounding from a 17-month low, WTI futures are locked in a range.
Despite being in a recovery phase, the 200-day simple moving average (SMA) just rejected the most recent increase in WTI oil futures (July delivery). After that, the price fell to a new 17-month low of 64.20 before beginning to recover some of its losses.
Momentum indicators currently indicate that although bearish forces are waning, they are still in charge. In particular, the MACD jumped above its trigger line in the negative area, the stochastic oscillator posted a bullish cross, and it is now ascending.
The 75.70 barrier may provide immediate resistance if buyers return and drive the price higher. If the price moves past that range, it might climb to attempt the 83.40 peak from 2023. Then, any further gains might stop at the 92.50 high in November 2022 before the 97.70 peak in August 2022 is examined.
Conversely, bearish activity might cause the price to challenge recent support at 69.40. The 17-month low of 64.20 might be reached if that zone is violated. The December 2021 low of 62.25 might offer downside protection if the price declines below that floor, taking it to levels not seen in recent months.
A bullish double-bottom pattern was formed by the steep decrease in WTI oil futures prices that resulted in a new multi-month low. Price must rise above its downward-sloping channel for that scenario to occur.
