The WTI futures have been developing within a bullish channel since December, showcasing a steady uptrend that has seen the price reach a six-month high on April 12. Despite a brief retreat from its peak, the price found support at the 50-day SMA, indicating a potential continuation of the positive momentum.
Technical Analysis
The WTI oil futures for June delivery have experienced a pullback from the recent highs, but the price managed to find stability at the 50-day simple moving average (SMA) and recover some of the losses. If the rebound momentum picks up, immediate resistance is likely to be encountered at 84.69, followed by the 61.8% Fibonacci retracement level at 86.90. Should the price surpass these levels, it could potentially target the 78.6% Fibo of 89.23. On the downside, a bearish scenario could see the price test the 50.0% Fibonacci level of 81.50, with further support at the 38.2% Fibo of 78.30 and the 23.6% Fibo of 74.35.
Assessment
Despite facing a setback, the WTI futures quickly regained traction after finding support at the 50-day SMA. The momentum indicators are currently favoring an upside scenario, suggesting that a continuation of the recent rebound is the most likely outcome. The bullish trend within the channel since December remains intact, indicating potential for further gains in the near term.
The WTI futures have exhibited a strong bullish trend since December, with the price reaching a six-month high in April. Despite a temporary pullback, the price found support at the 50-day SMA and is poised to resume its upward momentum. With key resistance and support levels identified through technical analysis, the outlook for WTI futures remains positive as the momentum indicators signal further upside potential in the near future.