- WTI keeps falling as inflation woes dent appetite for riskier assets.
- WTI is weighed down by the prospects of the US SPR release.
- The US oil is still eyeing symmetrical triangle breakdown on the 1D chart.
WTI (NYMEX futures) is pressurizing multi-day lows, flirting with the $79 mark, as persistent inflation concerns continue to sap investors’ confidence in higher-yielding assets such as oil.
The US oil also remains undermined by the increased calls for the US to release oil supplies from its Strategic Petroleum Reserves (SPR) to alieviate the pressure off the tightening oil market.
At the time of writing, WTI is posting small losses to trade at $79.30, little affected by the comments from the UAE and Oman Energy Ministers, as investors await the virtual meeting between the US and Chinese Presidents for a fresh take on the market sentiment.
From a short-term technical perspective, WTI continues to challenge the bullish commitments at the rising trendline support on the daily chart at $79.27.
The price briefly dipped below the latter on Friday but managed to recapture in on a weekly closing basis.
If WTI closes below the latter on Monday, then it will confirm a downside breakout from a two-month-long symmetrical triangle formation.
A fresh downswing will kick in, thereafter, opening floors towards ascending 200-Daily Moving Average (DMA) at $68.82.
Before reaching the 200-DMA, WTI bulls will look to find some support at the 50-DMA at $77.50.
The next support at the mildly bullish 100-DMA at $73.62 will appear on a firm break below the 50-DMA.
The 14-day Relative Strength Index (RSI) points south below the 50.00 level, allowing room for more declines.
WTI: Daily chart
On the flip side, any recovery attempts could meet the initial supply at the $80 round figure, above which the horizontal 21-DMA at $81.65 would be tested.
The falling trendline resistance at $83.39 will act as a tough nut to crack for WTI bulls if the recovery momentum picks up pace.
Acceptance above the latter could yield a triangle breakout, which could reinforce the bullish interests.
WTI: Additional levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.