WTI Crude Oil Spikes to New 12-Week Highs Despite Rising US Oil Rig Count

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The WTI Crude Oil price on Friday rallied to trade at a new 12-week high of about $74.20 despite soaring US crude inventories. The light crude oil continues to trade within an ascending channel formation in the 60-min chart after bottoming in mid-August.

The oil price has now surged several levels above the 100-hour moving average following Friday’s spike. It has also advanced to the overbought conditions of the 14-hour RSI. Therefore a short-term pullback could be imminent. 

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 markets. The global markets appear to be filled with optimism amid increasing vaccinations. However, the Evergrande collapse caused some scare adding pressure to the price of oil. 

Moreover, the US economic data released this week was mostly disappointing, missing expectations for Markit PMIs and jobless claims. Therefore, although oil prices seem to be rallying despite challenging economic situations, there is still a call for caution in the market.

In the latest crude inventory data, the Weekly API Crude Oil Stocks for last week came in at -6.108 million compared to the previous figure of -5.437 million. On the other hand, the  EIA Crude Oil Stocks Change report for last week returned a balance of -3.481 million, significantly higher than the preceding week’s change of -6.422 million.

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

Technically, the Light crude oil price seems to be trading within an ascending channel formation in the 60-min chart. It has recently rallied closer to the overbought conditions of the 14-hour RSI. This indicates a significant bullish bias in the market sentiment.

Therefore, the bulls will be looking to extend the current bull-run towards $74.72 or higher to $75.51. On the other hand, the bears will target potential pullback profits at around $72.95 or lower at $72.07.

WTI Crude Oil Technical Analysis (the Daily Chart)

In the daily chart, the light crude oil seems to be trading within a sharply ascending channel formation. This indicates a strong long-term bullish bias in the market sentiment. It has now surged closer to the overbought conditions of the 14-day RSI.

Therefore, the bears will be targeting potential pullback profits at around $70.30 or lower at $66.90. On the other hand, the bulls will target long-term profits at around $77.22 or higher at $80.64.

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