WTI Crude Oil Finds Strong Trendline Support After Pullback

The WTI Crude Oil price on Friday pulled back before finding strong trendline support at about $78.05. The light crude oil price now seems to have completed an upward channel breakout from a sharply descending channel formation.

The price of oil has now fallen to trade several levels below the 100-hour moving average line in the 60-min chart. As a result, the light crude oil fell deep into the oversold conditions of the 14-hour RSI before making a late rebound.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, the light crude oil price is trading at the back of a relatively busy period in the global markets. This week, the UK, the US, and Switzerland raised their base interest rates at the back of Canada, Australia and the EU’s earlier rate hikes this month. This has raised fear in the market amid the high inflation rates. On Friday, the US preliminary S&P Global PMIs beat expectations on all fronts, while the EU’s and the UK’s equivalent were mostly disappointing.

In the latest US crude inventory data, the API weekly crude oil stocks for the week ending September 16 fell to 1.035 million barrels down from 6.035 million reported for the preceding period. On the other hand, the EIA WTI crude oil stocks change for last week beat the expected change of 2.161 million barrels with a change of 1.142 million, down from 2.442 million reported for the preceding week.

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

Technically, the light crude oil price seems to be attempting an upward breakout from a sharply descending channel formation in the 60-min chart. This indicates an attempt by the bulls to trigger a market reversal.

Therefore, they will be targeting potential rebound profits at about $80.74 or higher at $82.30. N the other hand, the bears will be looking to stretch the current declines toward $78.05 or lower to $76.49.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the light crude oil price 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 targeting long-term profits at about $74.54 or lower at $69.22. On the other hand, the bulls will look to pounce on profits at about $85.63 or higher at $91.40.

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