WTI Crude Oil Pulls Back Off Session Highs to Extend Weekly Losses

The WTI Crude Oil price on Friday pulled back off the session highs of about $90.75 to trade at about $88.53. The light crude oil seems to be trading within a descending channel formation in the 60-min chart.

The oil price has now plummeted to trade several levels below the 100-hour moving average line. Friday’s late pullback prevented the light crude oil price from rallying into the overbought conditions of the 14-hour RSI.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, the oil price is trading at the back of a relatively busy period in the global markets. On Friday, the crude oil price rose on the back of a significantly strong US jobs report. The world’s largest economy reported a positive rise in the net jobs created in July to 528k, more than doubling the forecast of 250k, in addition, the unemployment rate fell slightly lower to 3.5% down from 3.6%, also surpassing expectations of 3.6%, while the average hourly wage increased by 5.2% on a year-over-year basis, ahead of estimates of 4.9%.

Elsewhere, the US API Weekly Crude Oil stock for the week ending July 29 came in at 2.165 million barrels, up from the previous week’s count of -4.037 million. On the other hand, the EIA Weekly Crude Oil Stocks Change report returned a difference of 4.467 million barrels, missing the expectation of -0.629 million, and up from the previous week’s equivalent of -4.523 million barrels.

WTI Crude Oil Technical Analysis (the 60-min Chart)

Technically, the light crude oil price seems to be trading within a descending channel formation in the 60-min chart. This indicates a significant short-term bearish bias in the market sentiment.

Therefore, the bears will be looking to extend the current streak of declines towards $87.56 or lower to $86.24. On the other hand, the bulls will be looking to pounce on profits at about $89.49, or higher at $90.75.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the light crude oil price seems to be trading within a sharply descending channel formation. This indicates a strong long-term bearish bias in the market sentiment.

Therefore, the bears will be targeting long-term profits at about $83.13, or lower at $75.58. On the other hand, the bulls will look to pounce on reversals at about $94.30, or higher at $100.87.

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