Friday’s Technical Analysis: WTI Crude Oil
WTI Crude Oil closed higher Thursday.
The high range close set the stage for a steady to higher opening when Friday’s US session opens for trade.
Stochastics and the RSI are Neutral to Bearish signalling that sideways to lower prices are possible near term.
If WTI Crude Oil extends the decline off of its June’ high, the 87% Fibo retracement mark of the 2009-2011 rally crossing is the next Southside target.
Closes above the 20-Day MA crossing are needed to confirm that a low is in.
WTI Crude Oil moved to the Northside Thursday approaching Key resistance 77.20, and since the price is below this mark, the Bearish scenario is valid and active targeting mainly 72.65 then 70.00. A break of 77.20 drives the price North towards 85.45.
Support: 75.90, 74.95, 73.85, 73.00, 72.65
Resistance: 77.20, 77.85, 78.75, 79.35, 80.00
Recommendation: Negative expectations below 75.90, risk-limit above 77.20.
Note: WTI prices fell 12% in October, the sharpest drop since May 2012, and have entered a Bear market as they fell more than 20% this year.
US Crude Oil imports have been declining on the back of the shale Oil boom that has brought the US near energy independence.
Crude Oil’s collapse is largely attributed to lower global demand, which was accompanied by more production from the Organization of the Petroleum Exporting Countries (OPEC). OPEC members, seeking to defend their market share of a highly oversupplied Crude Oil market, have engaged in a ‘price ware.”
West Texas Intermediate (WTI), also known as WTI Crude Oil or Texas light sweet, is a grade of Crude Oil used as a benchmark in Oil pricing.
This grade is described as light because of its relatively low density, and sweet because of its low sulfur content.
Crude Oil is the underlying commodity of Chicago Mercantile Exchange’s COMEX Oil futures contracts.
The price of Crude Oil is often referenced in news reports on Oil prices, alongside the price of Brent Crudefrom the North Sea.
WTI Crude Oil is lighter and sweeter than Brent Crude Oil, and considerably lighter and sweeter than DubaiorOman.
Have a terrific week.
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