WTI Crude Oil Price Analysis for Aug. 11, 2020

Free $100 Forex No-Deposit Bonus

WTI crude oil continues to trend higher inside a rising channel on the 4-hour chart. Price is finding support at the mid-channel area of interest and could be ready to head further north from here.

A larger pullback, on the other hand, could take it down to the channel support around the $40 per barrel mark or at least until the 61.8% level at $40.53 per barrel. This is in line with the 200 SMA dynamic inflection point, which adds to its strength as support.

On the subject of moving averages, the 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the indicators is still pretty narrow, so bullish momentum might not be that strong yet.

RSI is still treading higher, though, so there is some upside momentum left. The oscillator is nearing the overbought zone to signal potential exhaustion among buyers. Stochastic is also heading north, so crude oil prices could keep following suit. However, the oscillator is also approaching the overbought zone.

Crude oil drew a boost from news that Iraq is looking to curb oil production, even after OPEC nations have previously announced plans to loosen supply restrictions. As it turns out, the country is seeking to make up for its inability to comply with earlier reductions which the cartel agreed on back in April.

Traders could also take cues from the upcoming EIA inventory data, which is expected to show a 3.4 million barrel reduction in stockpiles. A larger than expected draw could mean more upside for the commodity price as would suggest stronger demand. On the other hand, an increase in inventories could confirm that purchases have been slowing again.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.