IronFX:WTI continued to rally breaking above the key psychological resistance-turned-into-support level of 45.00 (S1) and the downtrend line taken from the peak of the 9th of June.
The move was halted at the 46.00 (R1) resistance level. The break above the aforementioned hurdles has turned the medium-term outlook to positive in my view. As a result, I would expect the bulls to remain in control and make another attempt to push the price above the 46.00 (R1) area anytime soon.
However, looking at our short-term indicators, I see that a setback could be on the cards before the next leg higher.
The RSI hit resistance just above its 70 line and turned down, while the MACD, although above both its zero and signal lines, shows signs that it could start topping.
These momentum signs suggest that the move started on the 2nd of August has lost some of its strength and we could see WTI slightly lower from its current levels.
Zooming out to the daily chart, the break above the psychological 45.00 (S1) zone and the downtrend line taken from the peak of the 9th of June has shifted my medium-term view to the upside.
Support: 45.00 (S1), 44.20 (S2), 43.35 (S3)
Resistance: 46.00 (R1), 47.00 (R2), 47.70 (R3)