The price of WTI Crude Oil has been on a bullish trend since the start of the year. After bottoming at around $42.50 towards the end of last year, oil has rallied to trade at about $66.50 reached earlier this week before the temporary pullback that took it back to $65.50.
It has now rebounded to trade at the current level of $66 in the process forming what appears to be a tight sideways channel. This follows a previous channel range of $63 to about $64.50, which shows how steady and stable the price of oil has been since the start of the year.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, traders will be looking most recent oil supply reports for clues on the next direction of WTI Crude Oil price. And according to the American Petroleum Institute, there was a production build-up last week with the figure ticking up 167,000 barrels above expectations to 6.68 million barrels.
While the counterpart Brent Crude appears to be soaring well above $75, the WTI’s latest pullback is deemed only temporary with traders expecting to crawl back towards $66.50, just beneath the current yearly highs of 66.60.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the price of oil has jumped from a low trading range to higher trading range this week in what appears to be a channel breakout. This breakout took place early on Monday, buts since then, the WTI Crude oil has maintained a sideways movement in a tighter channel than the previous case.
This creates some interesting trading opportunities for both the bulls and the bears. The bulls will target profits at around $66.50 while the bears will hope the WTI pulls back towards $65.50.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the price of oil appears to be on a long journey up as the WTI tries to recoup losses incurred in the final quarter of 2018. That recovery now is about 3-quarters complete, which means there is still some ground to cover before a full recovery.
As such, this will keep the bulls more optimistic by targeting profits at around $67.60 or higher up at $70.00 per barrel for WTI Crude Oil. On the other hand, the bears will hope for a major pullback towards $64.87 or even lower at $62.40.
In summary, the price of oil appears to be on a road to full recovery and this will get the bulls more excited than the bears for the immediate future.