The WTI Crude Oil price on Friday pulled back to trade below $67.00 per barrel after a disappointing US Jobs Report. The light crude oil performed a reversal from an ascending channel formation, sharply falling to form a descending trend.
The oil price has now descended to trade below the 100-hour moving average after shortly ascending above it. As a result, it has moved closer to the oversold conditions of the 14-hour RSI.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the light crude oil price is trading at the back of a relatively busy period in the market. Oil prices are experiencing pressure amid fears the Omicron variant could lead to more country lockdowns, thus preventing international travel. Furthermore, the latest US jobs data fell substantially below expectations despite a significant decline in the unemployment rate. The market was expecting 550 new job creations in November but the US department of labour reported 210k.
Elsewhere, the Weekly API weekly crude oil stocks for the week ending November 26 declined to -0.747 million barrels, down from 2.307 million in the preceding week. On the other hand, the EIA crude oil stocks change missed the expectation of -1.237 million with -0.91 million, down from 1.017 reported in the preceding week. Looking forward, all eyes will be on the OPEC+ amid talks about production output increase for the coming months.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the WTI Crude oil seems to be trading within a sharply descending channel formation coming off an ascending channel. It has now fallen closer to oversold conditions of the 14-hour RSI.
Therefore, the bears will be looking to extend declines by targeting profits at about $65.21, or lower at $64.24. On the other hand, the bulls will be targeting potential rebound profits at about $67.62, or higher at $68.97.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the light crude oil price also seems to be plummeting within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.
Therefore, the bears will be looking to ride the current bearish trend towards $62.37, or lower to $57.54. On the other hand, the bulls will target potential reversals at about $70.26, or higher at $75.19.