The price of the WTI Crude Oil on Wednesday bounced off weekly lows of about $56.25 and rallied to top $57.30 amid as OPEC allays fears of declines in demand. The light crude oil continues to trade in a highly volatile sideways channel with strong support and resistance around $56.25 and $57.50 respectively.
Oil prices surged on Wednesday breaching the 200-hour, then the 100-hour SMA lines before settling at the current level of about $57.34 later in the day amid strong resistance at $57.50.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the price of Light Crude Oil is trading at the back of an encouraging report from OPEC, which allayed fears about a forecasted slowdown in the demand for oil in the foreseeable future. The report said that there is no cause for alarm triggering optimism in session trading, which sparked the rebound.
This optimism was further boosted by the latest API Crude Oil Stock Change for the week ending November 8, after a significant decline from 4.26M barrels in the previous week to -0.5M barrels.
Traders will be looking at Thursday’s EIA Crude oil and Natural gas reports for direction heading into the tail-end of the week. The consensus estimates expect Crude Oil Stock Change balance of 1.6M barrels for the week ending November 8, down from 7.929M barrels from the previous week.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the price of the WTI Crude oil has rallied close to the overbought levels of the RSI indicator in the 60-min Chart. This could trigger the next pullback as the Light Crude oil faces strong resistance at $57.50.
Therefore, the bears will be targeting short-term profits at around $57.08, $56.56, or lower at 56.23. On the other hand, the bulls will hope for a continuation of the current bull-run towards $57.50, $57.88 or higher at $58.34.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the price of WTI Crude Oil appears to be trading in a consolidative triangle formation. After the laters rebound, which triggered the current bull-run in the daily chart, the light crude oil now appears to be challenging the trendline resistance up top, which could trigger the next pullback.
Therefore, the bears will be targeting long-term profits at around $55.30, $53.07, or lower at $51.24. On the other hand, the bulls will hope that the current bull-run breaches the trendline resistance bu targeting profits at around $59.49, $61.13, or higher at 63.48.