The WTI crude oil price on Thursday extended the mid-week gains towards the current multi-year highs of $82, reached on Monday. The light crude oil bounced off the 100-hour moving average on two occasions before finding resistance just below $81.50.
The oil price continues to trade within a consolidative triangle formation in the 60-min chart. The WTI Crude oil also remains pegged close 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 markets. Optimism is returning to global economies amid the progress of covid-19 vaccinations. Moreover, Merck & Co’s covid-19 pill has boosted the chances of overcoming the deadly pandemic. As a result, investors are more optimistic amid increasing business activity, which in turn increases demand for energy, thereby boosting oil prices.
Moreover, OPEC+ has committed to a steady increment of production output following last year’s cuts.
Based on the latest rig count data, the US API Weekly Crude Oil Stock for last week showed a balance of 5.213 million, demonstrating a significant rise in inventories, from the preceding week’s balance of 0.951. And on Thursday, the EIA crude oil stock change report for the week ending Oct. 8 missed the expectation of 0.702 million with 6.088 million barrels.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the light crude oil price seems to be trading within a consolidative triangle formation above the 100-hour moving average. This indicates a decaying short-term bullish momentum in the market sentiment.
Therefore, the bears will be targeting potential pullback profits at around $80.81 or lower at $79.89. On the other hand, the bulls will be targeting short-term profits at around $82.18 or higher at $82.98.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the WTI Crude Oil price appears to be trading within a sharply ascending channel formation. As a result, the oil price has surged to the overbought conditions of the 14-day RSI.
Therefore, the bulls will be looking to ride the current rally towards $85.46 or higher to $90.21. On the other hand, the bears will be targeting long-term profits at around $77.05 or lower at $72.41.