The West Texas Intermediate (WTI) crude oil is developing within an ascending trend line since June and surged more than 27%. After the bounce off the $42.72 support level, the oil exposed to a fresh almost 29-month high at $57.82. On the monthly chart, the price is creating the third bullish month in a row and on the medium-term timeframe, is approaching the 200-SMA, near $58.93, which is the next resistance obstacle.
Going to the daily timeframe, the crude oil, early on Tuesday, had a slightly downward movement after the aggressive buying interest as Chinese crude imports fell to one-year low. However, our expectation remains to the upside. The MACD oscillator is rising above the trigger and zero lines with strong momentum, whilst the RSI indicator is holding in the overbought zone but is pointing to the downside with weak movement. In addition, the three simple moving averages are trading higher, confirming the recent bullish tendency on price.
