WTI Price Analysis: Trades back and forth above $75

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.

Sagar Dua FXStreet

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

WTI US OIL

Overview
Today last price	76.38
Today Daily Change	0.80
Today Daily Change %	1.06
Today daily open	75.58

Trends
Daily SMA20	83.09
Daily SMA50	85.67
Daily SMA100	81.54
Daily SMA200	77.97

Levels
Previous Daily High	77.11
Previous Daily Low	75.2
Previous Weekly High	84.85
Previous Weekly Low	79.94
Previous Monthly High	90.88
Previous Monthly Low	80.52
Daily Fibonacci 38.2%	76.38
Daily Fibonacci 61.8%	75.93
Daily Pivot Point S1	74.82
Daily Pivot Point S2	74.06
Daily Pivot Point S3	72.92
Daily Pivot Point R1	76.73
Daily Pivot Point R2	77.87
Daily Pivot Point R3	78.63

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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