WTI Futures Break Above Key Resistance, Eyeing Fibonacci Milestone: Positive Momentum Indicators Suggest Potential for Further Gains. West Texas Intermediate (WTI) oil futures, with a focus on the March delivery, have shown a remarkable recovery trajectory since their descent from the September high of $95.02. This downward trend witnessed the futures breaking through several support levels, but a recent reversal in momentum has initiated a promising recovery. Central to this recovery is the 61.8% Fibonacci retracement level of the $64.20 to $95.02 rise, a crucial benchmark that previously thwarted any further gains.
In the event of sustained bullish pressures, WTI oil might mount a challenge against the pivotal 61.8% Fibonacci level at $75.97. This particular level has been instrumental in capping the recovery attempts in December. Should the bulls break through this barrier, their next target would be the 50.0% Fibonacci level at $79.61. A successful ascent beyond this point could then confront resistance around the 38.2% Fibonacci level at $83.25.
On the downside, a reversal below the current support provided by the 50-day simple moving average (SMA) could lead to renewed bearish momentum. In such a scenario, the 78.6% Fibonacci level at $70.80 could provide initial support. A breach below this level might set the stage for a retest of the support range between $66.95 and $68.00, identified by the lows of June and the recent six-month trough. If the price fails to find footing in this zone, it could potentially retest the 2023 low at $64.20.
In summary, WTI oil futures are exhibiting a steady upswing in the near term, fueled by optimistic market sentiments. The immediate objective for sustaining this recovery lies in surpassing the significant 61.8% Fibonacci level at $75.97. Overcoming this hurdle could open the path for further upward movement, aligning with the current positive momentum indicators.
