WTI oil futures (July supply) have been in a sustained uptrend because the 92.60 area rejected any additional dip, producing a profound construction of upper highs and better lows. Furthermore, the ascending 50- and 200-day easy shifting averages (SMAs) endorse the commodity’s optimistic bearing.
The momentum indicators recommend that bullish forces are in management. Particularly, the stochastics are charging greater within the overbought zone, whereas the MACD histogram has crossed above its purple sign line within the optimistic area.
To the upside, quick resistance might be encountered at the latest peak of 114.90. Slashing by this area, the value would possibly ascend in the direction of 116.60, a violation of which might pave the best way for the 6½-year excessive of 130.50. Additional up, the 2018 resistance of 193.88 may show a tricky impediment for the bulls to beat.
Alternatively, ought to optimistic bias wane and the value reverse downwards, the 108.50 hurdle may act as the primary line of defence. Breaching this area, the highlight could flip to 101.20 earlier than the 97.00 barricade seems on the radar. Failing to halt there, the bears may then purpose at 92.60, which has rejected additional declines a number of occasions in 2022.
In short, WTI futures seem to have the required momentum to renew their long-term upside trajectory. Nonetheless, a break beneath the 92.60 ground may flip its short-term image again to bearish.