- WTI crude oil breaks the significant level of 68.90.
- Technical oscillators suggest negative momentum.
WTI crude oil has gained some notable ground after the selling interest toward the almost two-year low of $65.36, surpassing the crucial resistance levels of the 23.6% Fibonacci retracement level of the down leg from $80.59 to $65.36 at $68.90 and the long-term ascending trend line.
However, from a technical perspective, the momentum oscillators show weak movement. The RSI points slightly above the 50 territory, while the stochastic posted a bearish crossover between its %K and %D lines in the overbought region.
If the commodity falls below $68.90, it may challenge the 20-day simple moving average (SMA) at $68.00 before entering the descending channel. Lower, the $65.70 and $65.36 supports may cause negative actions.
On the other hand, a continuation of the up leg could reclaim the 38.2% Fibonacci of $71.20, which holds near the 50-day SMA, before battling with the $71.50 barrier. If the bulls continue to buy, the 50.0% Fibonacci and the 200-day SMA around $73.00 may prove to be tough obstacles.
All in all, WTI crude oil showed some improvement in the preceding days, but the technical oscillators suggest a negative bias.