The WTI Crude Oil on Wednesday bounced off weekly lows of about $23.00 to surge above $26.36 despite a week EIA report. The price of oil continues to trade in a consolidative wedge amid a lack of clear direction in the market sentiment. The oil price is now pegged between the 100-hour and the 200-hour SMA lines in the 60-min chart.
The price of the light crude oil is also nearing overbought levels of the shart-term 14-period RSI amid a recent bullish run. The $23.00 level also appears to be forming strong support.
WTI Crude Oil Fundamentals Overview
From a fundamental perspective, the WTI Crude oil appears to have fully priced in the uncertainty surrounding the potential impact of the coronavirus pandemic. The clear lack of direction could also be mirroring the attempts made by governments to mitigate the impact of the deadly virus.
As such, the adverse effects caused by country lockdowns might be balancing with the measures taken by governments to stimulate their economies. But in general, the COVID-19 pandemic is affecting the intermediate demand for crude oil with fewer flights and less business activity.
The latest API crude oil stocks for last week showed a significant increment to 11.938M barrels up from 10.485M in the previous period. On the other hand, the EIA crude oil report disappointed with a whopping 15.177M crude oil stocks change up from 13.834 in the previous period. The market was expecting a change of 9.271M barrels.
WTI Crude Oil Technical Analysis (the 60-min Chart)
Technically, the WTI crude oil price appears to be trading within a consolidative triangle formation. The price of oil has recently rebounded to touch the bearishly inclined trendline resistance. This could trigger the next pullback in the coming days. The $23.00 provides strong support.
Therefore, the bears will be targeting pullback profits at around $24.85 or lower at $23.00. On the other hand, the bulls will be looking to extend the current rebound towards $27.96 or higher at $29.76.
WTI Crude Oil Technical Analysis (the Daily Chart)
In the daily chart, the WTI Crude Oil appears to be on recovery after bottoming at anew multi-decade lows of about $19.44. The oil price has surged towards the 23.60% fib level, which could trigger the next pullback. The light crude oil has also climbed from oversold levels of the daily RSI.
The bulls will be targeting long-term profits at around 23.60% fib level at $30.31 or higher at $34.46. On the other hand, the bears will look to pounce at around $23.48 or lower at $19.44.