The price of the WTI crude oil on Wednesday rallied to retest the current 11-week highs of about $58.50 after a better than expected EIA report. The light crude oil bottomed at around $55.00 at the start of the month and after failing to make notable movement on Monday and Tuesday, it surged on Wednesday to top the $58.50 make before trimming those gains to the $58.35 level late on.
The oil price has now ventured into the overbought territory of the RSI indicator in the 60-min chart and looks relentless in its rally ahead of the crucial OPEC meeting on Thursday.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the oil price is trading at the back of another positive EIA report and ahead of what could be a definitive OPEC meeting tomorrow. Furthermore, the Saudi Aramco IPO is now on after the conclusion of the initial round of order placement afforded to banks and institutional investors.
In a few days, the world’s largest and most profitable company will be publicly traded and this could disrupt oil prices in the short-term. On Wednesday, the EIA WTI Crude Oil stocks change report showed a balance of -4.856M barrels beating the expectation of -1.734M. Earlier in the week, the API Crude Oil stock balances showed a change of -3.72M compared to a week earlier balance of 3.639M.
Traders will be looking forward to tomorrow’s OPEC meeting whose statements could change the course of oil prices for the rest of the year.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the price of oil appears to be experiencing a short-term bullish pressure in an ascending channel. The latest rebound pushed the WTI crude oil above the median line of Andrews’ pitchfork after recently bottoming below the -100% line.
Therefore, the bulls will be targeting short-term profits at around $58.76 or higher at $59.29 going into the new week. On the other hand, the bears will hope for an immediate pullback in the price of oil towards $57.75 or lower at $57.27.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the price of the WTI crude oil appears to be still trading within a consolidative triangle pattern. The oil price has recently touched the bearish trendline resistance following today’s rally. This could trigger the next pullback in the price of light crude oil.
Therefore, the bears will be targeting long-term profits at around $56.70, $55.00, $52.85 or lower at $51.35. On the other hand, the bulls will hope that the oil price can breach the trendline resistance and surge towards $60.71, $62.66, $64.38 or higher at $66.45.