The price of oil on Friday pulled back off the current 3-week highs of about $64.00 to trade at around $63.00 level following the latest data. The price of the WTI Crude oil appears to be trading within an ascending channel formation in the 60-min chart.
It recently made a bullish breakout from a sideways channel formation spiking the current bull run. It has now surged several levels above the 100-hour and the 200-hour SMA lines. Friday pullback prevented it from crossing to overbought levels of the 14-hour RSI.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, oil prices continue to enjoy the fruits of production cuts. The latest news suggests that OPEC+ could extend the cuts further after Saudi Arabia sought to keep the current cuts ongoing. However, there are fears that if Venezuela re-enters the market, oil prices could crash. But for now, the price of WTI crude oil appears to be in a strong position to continue rallying despite the recent pullback. The recovery of the global markets from Covid-19 could also help boost prices. The vaccine roll-out appears to be working with many countries relaxing their lockdown rules to help boost economic activity.
Based on the latest rig count data, The US API Weekly Crude Oil stocks posted a balance of -3.608 million for the week ending April 9. This was a significant decline from the previous week’s balance of -2.618 million. On Wednesday, the EIA Crude Oil Stocks Change report beat the expected rig-count of -2.889 million with a change of -5.889 million. This was also a significant improvement from the previous week’s count of -3.522.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the price of oil appears to be trading within a sharply ascending channel formation in the 60-min chart. This indicates a strong short-term bullish bias in the market sentiment.
The bulls will be looking to extend the current upward run towards $64.00 or higher to $65.00. On the other hand, the bears will target short-term pullbacks at around $62.00 or lower to $61.00.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the price of oil appears to be trading within an ascending channel formation. This indicates a significant long-term bullish bias in the market sentiment. It is now moving closer to overbought levels of the 14-day RSI.
The bulls will be targeting long-term profits at around $66.35 or higher at $70.00. On the other hand, the bears will look to pounce on long-term pullbacks at around $59.92 or lower at $55.27.