WTI Crude Oil Bounces Off Weekly Lows to Trade Above $109

The price of oil bounced off the current weekly lows of about $104.54 to trade above $109 after the latest round of data. The light crude oil appears to be trading within an ascending channel formation in the 60-min chart.

However, despite the session rally, it still remains below the 100-hour moving average line. Therefore, with the price also having room to run before crossing into overbought territory in the 14-hour RSI, the rebound could continue.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, light crude oil is trading at the back of a relatively busy period in the market. This week, US President Joe Biden said he won’t ask Saudi Arabia to increase the supply capacity amid the ongoing shortage caused by western sanctions on Russia. Before then, the supply squeeze caused by the lack of Russian supply had boosted oil prices to multi-decade record highs. 

The price of oil is also being affected by the latest round of US data. The disappointing ISM PMIs pushed the greenback lower, thus boosting the WTI crude oil price. Moreover, the latest API Crude Oil stocks for last week showed a significant decline, coming in at -3.799 million barrels compared to the previous week’s equivalent of 5.607 million. On the other hand, the EIA Crude oil stocks change missed expectations lightly with -0.386 million barrels compared to the estimate of -0.564 million.

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

Technically, the WTI crude oil price seems to be trading within an ascending channel formation in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment.

Therefore, the bulls will be targeting extended gains at about $110.30, or higher at $113.18. On the other hand, the bears will look to pounce on potential pullback profits at about $106.70, or lower at $104.54.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the price of light crude oil seems to be trading within a descending channel formation. This indicates a significant long-term bearish bias in the market sentiment.

Therefore, the bears will be looking to ride the current downward wave toward $102.08 or lower to $94.16. On the other hand, the bulls will target long-term profits at about $116.69, or higher at $124.12.

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.