The price of the WTI crude oil on Friday bounced off session lows following the release of the latest EIA crude oil report. The price of oil had earlier rallied to set new 3-month highs of about $62.02 before pulling back mid-day to bottom at around $61.20.
The price of oil made the rebound before touching the boundary to the oversold levels of the RSI indicator, which shows that the bulls remain firmly in control.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the WTI crude oil is trading at the back of another positive EIA Crude Oil Stocks Change report released on Friday. Trading has been less intense in the last few days due to the Christmas day celebrations. However, some data did come through on Friday, which provided the price of oil with a fundamentals boost heading into the tail-end of the month.
On Friday, the EIA Crude Oil Stocks Change report showed a balance of -5.474M barrels. Analysts were expecting a change of -1.724M barrels. This report follows Tuesday’s API crude oil stocks report that showed a change of -7.9M a significant improvement from the previous week’s change of 4.7M barrels.
The EIA Natural Gas Storage report also showed positive changes for last week with -161B versus a predicted change of -148B. This also compared positively from the previous week’s change of -107B.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the WTI Crude oil appears to be trading in an ascending channel, which indicates a short-term bullish bias in the market sentiment. The price fo oil is now pegged a few pips above the current level of the 100-hour and the 200-hour SMA lines, which further support a bullish case.
Therefore, the bulls will be targeting short-term profits at around $62.02, $62.34 or higher at $62.66. On the other hand, the bears will look to pounce on any pullbacks that come along by targeting profits at around $61.36, $61.07 or lower at $60.72.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the price of WTI Crude Oil appears to be facing strong trendline resistance off a consolidative triangle formation. The light crude oil also appears to have recently made a bullish breakout off a smaller consolidative triangle, which confirmes the existence of a bullish bias in the long-term market sentiment.
Therefore, the bulls will hope that the WTI crude oil can breach the trendline resistance and surge towards $63.90 or higher at $66.45 while the bears will be targeting the next pullback at around $59.91 or lower at $57.47.