The WTI Crude oil price rebounded late on Friday to recoup some of the session lows after plunging to 3-day lows. The oil price had fallen to trade at $52.63 before recovering late on to top $53.40. The price of light crude oil is still below the current 4-week highs of about $54.50 after bottoming at $49.33 earlier this month.
The price of oil continues to trade in an ascending channel amid increased buying pressure. The recent pullback has pulled it off overbought levels of the RSI indicator in the 60-min chart.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the price of the WTI Crude oil is trading at the back of a relatively quiet period in the market. The global market has been hit with fresh fears amid the coronavirus outbreak. There have been fresh coronavirus cases reported this week.
This comes hot on the heels of last week’s developments that pointed towards containment. It appears that it is becoming harder than imagined to contain the deadly virus, which has already claimed thousands of lives in China.
The latest production and supply reports also did not surprise enough to cause a stir. On Wednesday, the US API crude oil stocks report showed a balance of 4.2 million barrels down from 6 million in the previous week.
And on Thursday, the EIA WTI Crude Oil stocks change report beat the expectation of 2.494M barrels with 0.414M. The Baker Hughes US Oil Rig Count narrowly rose to 679 up from 678 in the previous week.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the price of oil appears to be experiencing a short-term bullish bias in the market sentiment. The oil price continues to trade in an ascending channel despite the recent pullback. Today’s rebound will give the bulls more optimism to stretch the rally further.
They will be targeting short-term profits at around $54.12, $55.07 or higher at $55.97. On the other hand, the bears will look to target pullback profits at around $52.63, $51.52, or lower at $50.66.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the WTI Crude Oil appears to be trading in a highly volatile sideways movement. This creates multiple opportunities in an undecided market. The oil price has recently bounced off oversold levels, which gives control to the bulls.
Therefore, the bulls will be targeting long-term profits at around $57.15, $59.61, or higher at $66.06. On the other hand, the bears will look to pounce on profit at around $49.91, $45.57 or lower at $41.69.