WTI Price Analysis: Fizzles upside momentum with eyes on OPEC+, EIA data

  • WTI takes a U-turn from $42.99 even as MACD teases the bulls.
  • Steady RSI, bearish spinning top favor sellers to attack eight-day-old support line.
  • OPEC+ ministerial meeting may not announce any change in the production cut accord, may praise the participants’ level of compliance.
  • EIA can register another draw in the inventories following the API data.

WTI drops to $42.80 as traders in Brussels gather for Wednesday’s opening. The oil benchmark printed a bearish spinning top candlestick the previous day, which suggests the trader’s indecision. The same could be reflected in the quote’s recent weakness despite adverse MACD and RSI conditions.

Also weighing on the black gold is the market players’ cautious sentiment ahead of meeting among the members of OPEC+ comprising the Organization of the Petroleum Exporting Countries (OPEC) and Russia. Furthermore, anticipated declines in the official stockpile data from the Energy Information Administration also depress the oil traders.

As a result, sellers are inching closer to an ascending trend line from August 07, near $42.30, a break of which could attack a 21-day SMA level of $41.85.

Meanwhile, any surprise announcements from the OPEC+ meeting and/or extreme depletion in inventories may challenge the monthly top around $43.65. Though, $43.00 can act as an immediate upside barrier.

It’s worth mentioning that February month low near $44.00 holds the key to the commodity’s run-up to March month’s peak close to $48.75.

WTI daily chart

Trend: Pullback expected

 

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