WTI Crude Oil Recovers from Fresh Weekly Lows to Top $55.60

Free $100 Forex No-Deposit Bonus

The price of WTI crude oil refreshed weekly lows on Thursday at around $54.79 before attempting a late recovery to close above $55.60. The light crude oil has been trading under extreme bearish pressure since last week after the conflict between the US and Iran appears to calm down. 

The oil price dropped to the oversold levels of the RSI indicator in the 60-min chart but recovered after bottoming at just below $54.80. 

WTI Crude Oil Fundamentals Overview

From a  fundamental perspective, the price of oil is trading at the back of a relatively quiet period compared to the previous week. The light crude oil still appears to be suffering from last week’s events that saw the US-China strike a momentous trade deal. This happened off the back of what appeared to be a welcomed ceasefire between the US and Iran. Calm appears to have returned in the Persian Gulf and this puts pressure on oil prices.

This week, the US API crude oil stocks edged higher to 1.6M up from the previous week’s stocks of 1.1M barrels. And on Thursday, the EIA crude oil stocks change also missed analyst expectations. The market was expecting a change of -1.009M but the report showed a change of -0.405M barrels.

On the other hand, the EIA natural gas storage beat the expectation of -91B with -92B up from the previous week’s -109B. Traders will be looking forward to the Baker Hughes oil rig count report on Friday.

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

Technically, the light crude oil appears to be experiencing extreme bearish pressure after refreshing weekly lows below $54.80. The late recovery helped the oil price to climb from oversold levels thereby creating room for bears to target on Friday.

Therefore, the bears will be targeting short-term profits at around $54.79 or lower at $54.24 going into Friday. On the other hand, the bulls will look to pounce on rebound profits at around $56.30 or higher at $56.97.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the WTI Crude Oil appears to be trading under strong bearish pressure after the latest pullback. The oil price has been trading in a highly volatile cyclical pattern since June last year and this could continue for a few months. 

Therefore, the bulls will target long-term profits above the 100-day and the 200-day SMA lines at $57.38, $59.26 or higher at $61.16. On the other hand, the bears will look to pounce at around $53.87, $52.68 or lower at $50.77.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.