WTI Crude Oil Price Analysis for Nov. 24, 2021

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WTI crude oil is finding support at the area of interest or former resistance around $75 per barrel and might be due to climb to the next upside targets. The Fibonacci extension tool shows the potential resistance levels.

The 38.2% level is at $83.87 per barrel near the swing high, then the 50% Fib is at $86.64 per barrel. Stronger bullish pressure could take it up to the 61.8% level at $89.41 per barrel or the 76.4% level at $92.85 per barrel. The full extension is at $98.39 per barrel.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. The 100 SMA also held as dynamic support on the latest dip.

RSI has some room to head lower, though, so there could be some selling pressure left. Stochastic already reached the oversold region and is turning higher to signal a return in bullish momentum.

Crude oil could take cues from the EIA inventory report, which is slated to show a reduction of 1.7 million barrels in stockpiles. This would be smaller than the earlier draw of 2.1 million barrels, suggesting a slight slowdown in purchases or an increase in supply.

However, the API reported a build in crude oil stockpiles after the SPR release versus expectations of a draw of 950K barrels. China is also said to have released oil reserves into the global market to mitigate the energy crunch and keep prices stable.

A build reported by the EIA might mean more downside for the commodity in the near-term, especially since the OPEC warned that the reserves release might cause a global glut. The cartel is due to reevaluate its production targets as well in order to see if adjustments are necessary.

On the other hand, a draw could reassure investors that demand remains supported for the time being.

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