- The oil price struggles for a direction as investors seek fresh developments in the Israel-Hamas war.
- A hawkish guidance from Fed Powell on interest rates has dampened the oil demand outlook.
- WTI trades sideways due to a Symmetrical Triangle chart formation.
West Texas Intermediate (WTI), futures on NYMEX, trade directionless in a narrow range above the crucial support of $75.00 in the European session. The oil price struggles for a direction as investors seek fresh developments in the Israel-Hamas war.
The oil price is hovering near the three-month low and is expected to extend downside as the war situation between Israel and Palestine is seen remaining contained between them. This would not disrupt the oil supply chain significantly.
Meanwhile, hawkish guidance from Federal Reserve (Fed) Chair Jerome Powell on interest rates has dampened the oil demand outlook. Jerome Powell doesn’t consider current interest rates adequate to tame price pressures.
WTI trades sideways due to a Symmetrical Triangle chart formation on an hourly scale. The aforementioned chart pattern indicates a sharp compression in volatility. This indicates that investors await a potential trigger for a strong action.
The 20-period Exponential Moving Average (EMA) at $76.00 remains close to oil prices, indicating a lackluster performance.
The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00, portraying a sideways trend.
More offers would appeal if the oil price drops below November 8 low near $75.00. The oil price would fall further towards July 18 low at $73.85, followed by psychological support of $70.00.
In an alternate scenario, a decisive break above November 8 high at $77.42 would drive the asset toward November 3 low near $80.00. A breach of the latter would expose the asset to November 6 high at $82.00.
WTI hourly chart
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