WTI Crude Oil Finds Resistance at the 100-Hour MA after Rebound

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The WTI Crude oil on Friday bounced off the key support at $79.65, before finding solid resistance at the 100-hour moving average. The light crude oil price continues to trade within an ascending channel formation in the 60-min chart. 

The oil price remains pinned below the 100-hour MA despite Friday’s sharp spike. In addition, the late pullback prevented the WTI Crude oil from surging to the overbought conditions of the 14-hour RSI.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, the light crude oil is trading at the back of a relatively busy period in the global financial markets. With most central banks across the world already opting against hiking interest rates, the current bullish outlook in the oil market remains intact. All eyes will be on the OPEC+ meeting ahead of the next production output decision. The group decided against calls to boost monthly output above the incremental rate of 400,000 barrels, thus boosting oil prices.

Based on the latest API data, the US Weekly Crude Oil Stocks for last week came in at 3.594 million up from the previous week’s tally of 2.318 million. On the other hand, the EIA WTI Crude Oil Stocks Change for the week ending October 29 fell to 3.291 million, down from the preceding week’s change of 4.267 million.

Elsewhere, the US economic data this week was relatively impressive with all the key figures beating expectations. Therefore, the current rebound in oil prices could extend through next week.

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

Technically, the light crude oil seems to be trading within an ascending channel formation in the 60-min chart. However, the oil price also appears to have found solid resistance from the 100-hour moving average, creating an opportunity for a pullback.

Therefore, the bears will be targeting potential pullbacks at about $79.68, or lower at $78.30. On the other hand, the bulls will be looking to ride the current rally towards $82.28, or higher at $83.43.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the light crude oil seems to be trading within a sharply descending channel formation, this indicates a significant long-term bearish bias in the market sentiment. The WTI Crude Oil also seems to be trading closer to the trendline resistance after a recent rebound. 

Therefore, the bears will be looking to stretch the current declines towards $77.01 or lower to $73.22. On the other hand, the bulls will be targeting long-term profits at about $84.84, or higher at $88.75.

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