On Friday, the WTI crude oil price pulled back from the session highs of about $87.57 to trade at about $86.71. The oil price trades within an ascending channel formation on the 60-minute chart.
The light crude oil price continues to trade a few levels above the 100-hour moving average line, despite the latest pullback. As a result, it still has plenty of room left to run before reaching the oversold levels of the 14-hour RSI.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the light crude oil price trades during a relatively busy period in the US market. On Thursday, the Philadelphia Fed Manufacturing Survey for August came in better than expected, at 47.4 versus a forecast of 25, up from the previous month’s equivalent of 41.4. On the other hand, the initial jobless claims for last week fell to 206k, down from 212k, beating the forecasted claim count of 210k.
Earlier in the week, the US building permits for July also exceeded the expectation of 1.37 million, with a tally of 1.433 million, up from the preceding month’s equivalent of 1.374 million, while housing starts for the period missed 1.35 million, with 1.239 million, down from 1.415 million in June.
Industrial production for July also fell short of the forecasted change of 0.3% (MoM), with a change of 0.2%, while the pending home sales for the month missed 0.3%, with a change of -2.3% (MoM).
In the latest US crude inventories data, the API weekly crude oil stock for last week fell to -0.328 million, down from the previous week’s equivalent of 9.072 million. On the other hand, the EIA crude oil stocks change for last week fell to 4.405 million, down from the preceding week’s equivalent of 17.422 million, missing the forecasted change of -0.6 million.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the WTI crude oil price trades within an ascending channel formation on the 60-minute chart. However, the 14-hour RSI has recently pulled back to recover from overbought conditions.
Therefore, the bears will look to stretch the latest pullback towards $84.67 or lower to $83.22. On the other hand, the bulls will look to pounce on profits at about $87.57, or higher at $88.94.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the light crude oil price trades within a descending channel formation. However, the 14-day RSI has recently bounced back to move closer to overbought conditions.
Therefore, the bulls will look to pounce on extended rebounds at about $93.69 or higher at $101.34. On the other hand, the bears will look to pounce on pullbacks at about $79.00 or lower at $70.74.