WTI Consolidating Between $44.00-$43.00 Level
WTI crude oil future has been consolidating within a narrow trading
range and following a profit taking drop below $43.00 mark has moved
back closer to $43.50 level.
After breaking through an important resistance near $42.50-40 level, representing 200-day SMA and highs tested in Mar. and April, the commodity went on to hit its highest level in 2016. Since then it has been oscillating between $44.40-$43.00 range.
Technical levels to watch
From current levels, move above $44.00 round figure mark resistance, the upper end of the range, $44.40-45 area, representing 61.8% Fibonacci expansion level of 27.73-42.46 up-move and subsequent retracement, is likely to continue acting as immediate strong resistance. Only a clear break-through this important resistance would now open room for a fresh leg of near-term up-move for the commodity.
On the flip slide, sustained weakness below $43.00 mark (the lower end of the trading), is likely to drag it back towards $42.50-40 resistance break-point, now turned immediate strong support. This $42.50-40 area now seems to restrict any further downside pressure in the near-term.