On Friday, the WTI crude oil price bounced from the session lows of about $80.60 to trade at about $85.69. The oil price trades within a slightly ascending channel formation on the 60-minute chart.

The light crude oil price has now advanced to trade a few levels above the 100-hour moving average line. As a result, it is on the verge of entering the overbought 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 Friday, the US employment cost index for Q2 outperformed the expected change of 0.8%, with a change of 0.9%. The Chicago Purchasing Managers’ Index for July also came in better than expected, at 57.6 versus a forecast of 56, up from the previous month’s equivalent of 56.7.

On the other hand, the Michigan Consumer Expectations Index for July exceeded the forecast of 54, with a reading of 55.4, up from the previous month’s equivalent of 54. The Michigan Consumer Sentiment Index for the month also outshone the estimate of 54, with a reading of 55.2, up from 54.4 in June. Elsewhere, the UoM 1-year and 5-year consumer inflation expectations for the period matched the forecasts of 4.2% and 3.3%, respectively, unchanged from June.

In the latest US crude inventories, the API weekly crude oil stock for last week missed the expectation of -1.5 million, with 3.296 million, up from the previous week’s equivalent of 2.603 million. On the other hand, the EIA crude oil stocks change for last week came in better than expected, with a change of -7.167 million versus a forecast of -2.5 million, down from the preceding week’s equivalent of 2.011 million. 

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

Technically, the light crude oil price trades within a slightly ascending channel formation on the 60-minute chart. The 14-hour RSI also supports a bullish bias as it edges closer to overbought conditions.

Therefore, the bulls will look to stretch the latest rebound towards $90.29 or higher to $95.68. On the other hand, the bears will look to pounce on pullbacks at about $80.60, or lower at $75.17.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the WTI crude oil price trades within a descending channel formation. The 14-day RSI has also recently pulled back to avoid rallying into overbought conditions.

Therefore, the bears will look to extend the current pullback towards $69.72 or lower to $55.10. On the other hand, the bulls will look to pounce on profits at about $100.29, or higher at $115.26.