The price of WTI Crude Oil has been on a rally since last week. It seemed set to breach the key resistance level of $60.00 per barrel on Tuesday, but it was held back owing to strong technical resistance.
WTI Crude oil traded at $59.60 in the early trading hours before pulling back to trade at $58.86 in the late afternoon session. This confirmed the rejection of the $60.00 per barrel price level.
WTI Crude Oil Fundamental Analysis
The FOMC meeting kicked off on Tuesday. The statement for the two-day meeting is expected to be released tomorrow, Wednesday, March 20, and this could give a direction regarding interest rates, a new approach to inflation, and a statement on the current balance sheet.
But before then, oil traders will be keen to find out about the level of production when the API weekly oil stock report comes out in the next couple of hours.
WTI Crude Oil Technical Analysis (the 240-min Chart)
Generally, the price of WTI Crude oil has been on an upward trend since the turn of the year. Oil prices dropped massively during the final quarter of 2018, but it looks like they have turned the corner now.
However, that bullish run appears to have found a strong resistance around the $60.00 key level, which was rejected on Tuesday triggering a short-term pullback. At the current level of about $58.86, the bulls will target the $60.00 level for profits while the bears will aim for $58.00 in the short-term.
WTI Crude Oil Technical Analysis (the Daily Chart)
And looking at the daily chart, the WTI Crude oil appears to be trading just a few paces below the 50% Fib retracement level, which suggests that this could be a good target for the bulls in the short-term. Again, it is in the $60.00 per barrel range.
On the other hand, the bears will look down below by targeting the key Fib rebound level 61.80%, which is slightly below the support level at $56.00. This sets WTI Crude oil for an interesting trading session for the next few days.
In summary, the price of WTI Crude oil continues to maintain a bullish bias in the intermediate and the long-term. However, after rejecting the $60.00 level on Tuesday, it looks like a pullback could be on the cards.