WTI Crude Oil Pulls Back Towards Key Support To Trim Weekly Gains

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The WTI crude oils price continued to consolidate weekly gains around the $42.00 level on Thursday. The light crude oil rallied to $43.58 earlier in the week. It continues to trade within a slightly ascending channel in the 60-min chart. 

The price also remains pinned well above the 100-hour and the 200-hour SMA lines despite the recent pullback. It is also trading within the normal trading one of the 14-hour RSI after today’s pullback.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, the WTI crude oil is trading at the back of a relatively busy period in the global financial markets. The coronavirus pandemic continues to rage havoc on stock markets across the world amid slowed business activity. Recently, some countries have continued to open up their economies for international travel. This appears to have boosted oil prices marginally. Business activity is also picking up in some economies like the US, which implemented astute economic stimulus measures. 

The light crude oil is also benefiting from this week’s storage report. Earlier in the wee, the US API crude oil stocks for the week ending July 31 came in at -8.587M barrels. This was a significant improvement from the previous week’s balance of -6.829 million barrels. On Wednesday, the EIA Crude oil stocks change report came in at -7.373 million barrels, a  slight increase from the previous week’s change of -10.612 million barrels. However, this was better than the expected change of -3.001M.

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

Technically, the price of oil appears to be trading within a gently rising wedge in the 60-min chart. This indicates a significant short-term bullish bias in the market sentiment. The current trend could continue through next week. It remains within the normal trading range in 14-hour RSI.

The bulls will target short-term profits at around $42.65 or higher at $43.58. On the other hand, the bears will look to pounce for profits at around $41,40 or lower at $40.51.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the WTI Crude Oil appears to have slowed down on its way up the recovery curve. It is now pegged just below the 61.80% Fib level. The steady rise pushed it closer to overbought levels of the 14-day RSI. However, it has failed to cross over to overbought levels.

The bulls will be looking to extend the current gains towards $45.97 or higher to $51.65. On the other hand, the bears will target pullback profits at around $36.08 or lower at $29.09.

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