- WTI crude oil breaks a significant level at 78.75 to the upside.
- MACD rises but stochastic looks overstretched.
WTI crude oil (cash) created a notable green candle in Wednesday’s session of around 5% gain, sending the market to a new six-month high of 80.59. Additionally, the commodity broke through a significant barrier at 78.75, which it had repeatedly failed to surpass in past.
According to the technical oscillators, the MACD oscillator is strengthening its positive movement well above its trigger and zero lines; however, the stochastic is losing some momentum in the overbought region, indicating a downside pullback in the market.
In case of steeper bullish actions, a break above the 80.50 barricades could open the door for investors to test the 83.30 and 84.70 resistance levels.
On the other hand, a downside retracement could send oil prices to the immediate 78.75 support ahead of the 76.65 line. Below that, the 200-day simple moving average (SMA) at 75.45 is positioned as a potential reversal point for the price action.
To sum up, WTI crude oil is showing strong improvement after the penetration of the short-term trading range and the climb above the long-term descending triangle.