WTI Crude Oil Targets a Retest of $43.00 After Rebound

Free $100 Forex No-Deposit Bonus

The price of WTI Crude oil on Wednesday extended its mid-week recovery towards $43.00 level after pulling back late on Tuesday. The price of oil bounced off the trendline resistance at $41.45 to rally above $42.50. The light crude oil continues to trade within a slightly ascending channel in the 60-min chart.

It has now surged above both the 100-hour and the 200-hour SMA lines. It continues to trade close to the overbought levels of the 14-hour RSI. This could trigger a short-term pullback.

WTI Crude Oil Fundamentals Overview

From a fundamental perspective, it looks like the WTI Crude Oil is benefiting from positive developments around another $2 trillion US quantitative easing. This comes amid continued negative impact of the coronavirus pandemic on global economies. The latest US economic numbers also paint a positive picture going into the second half of the month. This comes after both the US CPI  and PPI for July outperformed expectations. 

In terms of crude oil stocks, it looks like the production cuts among the OPEC+ members are continuing to pay off. Supply cuts were extended through the end of the year after the expiry of the previous agreement at the end of last month. In the US, the API crude oil stocks for the week ending August 7 came in at -4.4 million barrels up from -8.587M in the previous week. On the other hand, the EIA crude oil stocks change reports recorded a balance of -4.512M, which as better than the expected figure of -2.785M.

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

Technically, the WTI crude oil appears to be trading within a gently ascending channel in the 60-min chart. This indicates a slight short-term bullish bias in the market sentiment. The oil price is now closer to crossing to the overbought level of the 14-hour RSI. this could trigger a short-term pullback.

The bears will be targeting short-term pullback profits at around $42.01 or lower at $41.37. On the other hand, the bulls will look to retain short-term control by targeting profits at around $43.02 or higher at $43.58.

WTI Crude Oil Technical Analysis (the Daily Chart) 

In the daily chart, the WTI Crude oil appears to be running out of steam in its bid to recover from the January-April plunge. It appears to be struggling for upward momentum around the 61.80% Fib level. 

The bulls will be looking to push oil prices higher to $47.23 or at 76.40% Fib level at $51.68. On the other hand, the bears will target long-term pullback profits at around 50% and 38.20% Fib levels at $36.10 and $29.09, respectively.

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.