The WTI Crude Price Extends Weekly Gains Above $52.00 After EIA Report

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The WTI crude price on Friday extended the current weekly gains above $52.05 following the latest round of EIA reports. The oil price has traded on a sideways movement since the beginning of the month amid coronavirus fears. 

However, this week it surged above the 100-hour and the 200-hour SMA lines signaling a potential bull-run. Nonetheless, the light crude oil still faces strong resistance around $52.10, which could trigger the next pullback.

WTI Crude Price Fundamentals Overview

From a fundamental perspective, the initial impact of the coronavirus outbreak appears to have dissipated. This has resulted in the current stability of the WTI Crude price and the subsequent recovery. However, there are fears that the coronavirus could have more impact if it continues to spread and this has kept oil prices pegged just below $52.10. The price of oil has also weathered the Brexit day storm at the end of January.

However, oil prices were not helped by the latest EIA report, which missed expectations by a mile. On Wednesday, the WTI Crude Oil Stocks Change report for the week ending February 7 missed the forecasted balance of 2.987M barrels with 7.459M. 

This came hot on the heels of API Weekly Crude Oil Stock for February 7, which showed an increment to 6M barrels up from 4.18M in the previous week. On Thursday, the EIA Natural Gas Storage report showed a change of -115B beating the expectation of -110B.

WTI Crude Price Technical Analysis (the 60-min Chart)

Technically, the crude oil price appears to be lacking directional momentum despite this week’s rebound. The WTI Crude price is facing strong resistance around the $52.00 level as the bulls remain cautious. The oil price has also hit overbought levels in the RSI indicator, which could trigger the next pullback.

Therefore, the bears will be targeting short-term profits at around $51.29, $50.52 or lower at $49.95. On the other hand, the bulls will look to target profits at around $52.63, $53.35, or higher at $54.22.

WTI Crude Price Technical Analysis (the Daily Chart)

In the daily chart, the price of WTI crude oil appears to have recently bottomed at around $49.31 after a plunge. The oil price fell from a high of $65.77 in January to $49.31 in early February amid US-China trade deal uncertainty, US-Iran conflict, and the coronavirus. Now the light crude oil appears to be on a rebound.

The bulls will target the 23.60% Fib level, the 38.20%, 50%, 61.80%, and 76.40% for profits at $53.16, $55.50, $57.60, $59.40 and $61.88, respectively. On the other hand, the bears will look to pounce for profits at $50.19 or lower at $49.39.

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