After bottoming on the 26th of December, WTI has been trading on a recovery mode above a new tentative upside support line. Yesterday, the black liquid rebounded from near the 48.55 zone and during the early Asian morning today, it managed to break above the psychological round figure of 50.00. What’s more, during the European morning, the price managed to move above the 200-EMA for the first time since the 17th of October. So, having all these in mind, we would consider the near-term outlook to be positive for now.
We would expect the current recovery to continue and perhaps challenge the 52.10 zone, the break of which may open the path for the 53.00 barrier. That hurdle proved to be a good resistance from the 10th until the 14th of December. Another move above 53.00 may encourage the bulls to drive the battle towards the 54.35 zone, ore the next psychological figure of 55.00.
Shifting attention to our short-term oscillators, we see that the RSI edged north and just poked its nose above its 70 line, while the MACD lies above both its zero and trigger lines, pointing somewhat up as well. These indicators detect strong upside speed and corroborate our view for some further advances.
On the downside, we would like to see a clear and decisive dip back below 47.70 before we start examining whether the bulls have abandoned the battlefield, at least in the short run. Such a dip could also bring the price below the aforementioned short-term upside support line and may allow declines towards the 45.60 area, marked by the low o the 3rd of January. Another dip below 45.60 could trigger extensions towards the 44.50 obstacle, which provided decent support on the 27th and 28th of December, as well as on the 2nd of January.
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