WTI crude oil prices have shown a positive recovery after a bearish gap, reaching a critical level near the downtrend line at around 71.00. This increase of over 6% in the past few days is reflected in the momentum oscillators, indicating a positive bias. The MACD oscillator has moved above its trigger line below zero, while the stochastic is trending upwards after a bullish crossover in its %K and %D lines above the 20 zone.
If the price continues to rise above the 71.00 key level, it could encounter resistance between the 20- and 50-day simple moving averages at 71.80. Further resistance levels could be seen at 72.95 and 76.65 before reaching the significant 200-day SMA at 77.60. However, in case of a decline, immediate support may be found at the 67.00 round number, followed by the 17-month low of 65.70. A further decrease could bring attention to the April 2023 trough at 63.60, potentially worsening the bearish outlook.
Looking at the medium-term perspective, a shift in sentiment towards bearishness was observed after the drop to 65.70. Only a move above 78.75 could signal a return to a more neutral market stance.
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