The WTI crude oil on Thursday pulled back off the session highs of about $76.85 to trade at about $75.50 before bouncing back to $75.92. The light crude oil price continues to oscillate within a descending channel formation in the 60-min chart.
The price of oil has now fallen to trade below the 100-hour moving average line. As a result, the oil price appears to be edging closer to the oversold levels of the 14-hour RSI.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, light crude oil is trading at the back of a relatively busy period in the market. On Wednesday, the US durable goods orders for October missed the expected change of -3.1% with a change of -5.4%. The durable goods orders ex-transportation also missed 0.1% with a change of 0%, while the nondefence capital goods orders ex-aircraft fell short of 0.1% with a change of -0.1%.
The Michigan Consumer Sentiment Index for October outperformed the expected reading of 60.5 with a reading of 61.3. On the other hand, the initial jobless claims for the week ending November 17 outshone the forecast of 225k with a tally of 209k.
In the latest US crude inventories, the API weekly crude oil stocks for the week ending November 17 increased to 9.047 million barrels up from the previous week’s equivalent of 1.335 million. On the other hand, the EIA crude oil stocks change for last week missed the expected change of 0.9 million with a change of 8.701 million, up from the preceding week’s equivalent of 3.6 million.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the light crude oil price appears to be oscillating 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 run of declines toward $75.03 or lower to $74.03. On the other hand, the bulls will be targeting potential rebounds at about $76.85 or higher at $77.83.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the WTI crude oil price seems to be trading within a descending channel formation. The price of oil also appears to have fallen to trade below the 100-day moving average line.
Therefore, the bears will be targeting long-term profits at about $72.36 or lower at $68.93. On the other hand, the bulls will look to pounce on profits at about $79.73 or higher at $83.50.