WTI crude oil futures are rising above the bullish cross within the 20- and 40-simple moving averages (SMAs) but are still hovering below the Ichimoku cloud in the 4-hour chart. The downside momentum appears to have run out of steam as the stochastic oscillator is returning higher while the RSI is trying to gain ground above the neutral threshold of 50.
Should oil prices manage to strengthen the slightly bullish retracement the next resistance could come around the 23.6% Fibonacci mark of the dowleg from 66.60 to 50.60 near 54.36. A break above this region would open the way towards the 54.85 region and above this level the 38.2% Fibonacci of 56.70 could attract traders’ attention.
On the other hand, if prices tumble below the bullish cross of the moving averages, they could find immediate support at the 52.30 hurdle. A potential downside violation could increase negative pressure until the five-month low of 50.60.
In the near-term, the bias turned marginally positive since prices hold above all the moving average lines. However, traders should be waiting for a jump above 54.85 for positive orders, or a drop below 50.60 for more downside movement.