On Friday, the WTI crude oil price pulled back from the session highs before bouncing back to trade at about $75.45. The oil price trades within an ascending channel formation in the 60-minute chart.
The light crude oil price has now ascended to trade slightly above the 100-hour moving average line. However, the oil price has more room left to run before reaching 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 U.S. market. On Friday, the preliminary UoM 5-year inflation expectation for October edged slightly lower to 3%, down from 3.1% in September. The preliminary Michigan Consumer Sentiment Index for the month also fell to 68.9, down from 70.1, missing the forecasted reading of 70.8.
The producer price index for September missed the expected (MoM) rate of 0.1% with a rate of 0%. The (YoY) equivalent outshone the estimate of 1.6% with a rate of 1.8%. On the other hand, the producer price index ex-food and energy outshone the expectation of 2.7% with a rate of 2.8% (YoY), while the (MoM) equivalent was in line with the estimate of 0.2%.
In the latest U.S. crude inventories, the API crude oil stock for the week ending October 4 missed the expectation of 1.95 million with 10.9 million, up from the previous week’s equivalent of -1.5 million. On the other hand, the EIA crude oil stocks change for last week missed the forecast of 2 million with a change of 5.81 million, up from the preceding week’s equivalent of 3.889 million.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the light crude oil price trades within an ascending channel formation in the 60-minute chart. However, the 14-hour RSI still has room left to run before reaching overbought conditions.
Therefore, the bulls will look to extend the current rally towards $70.90 or higher to $78.50. On the other hand, the bears will look to pounce on pullbacks at about $74.06 or lower at $72.46.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the WTI crude oil trades within an ascending channel formation. The 14-day RSI also supports a bullish bias as it moves closer to the overbought conditions.
Therefore, the bulls will be targeting long-term gains at about $80.03 or higher at $84.55. On the other hand, the bears will look to pounce on pullbacks at about $70.9 or lower at $66.25.