US crude oil futures rallied above the Ichimoku cloud last week, rising above it as well as the 50-day moving average for the first time since November 2015. Prices currently stand above 36 – the highest since January 5.
The momentum indicators are all positive with RSI moving towards 70 and the MACD turning positive also for the first time since November. This is an indication that there is scope for further gains. Further bullish signals are provided by the positively aligned tenkan-sen and kijun-sen lines. The nearest resistance is 38 (a previous closing resistance level). A break above this level would help sustain the current upside momentum.
If prices fell back into the cloud, support would come at the 50-day moving average around 32.60. A drop below the 50-DMA would reverse the current positive bias.
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