Crude Oil Price News and Forecast: WTI corrects from channel lows and target a break to the 21-DMA
|Oil Technical Analysis: WTI correcting Friday’s drop near $56.00 a barrel
The crude oil West Texas Intermediate (WTI) is currently trading near $56.00 a barrel and the 50/100 DMAs consolidating Friday’s drop.
WTI is correcting the bear breakout below the 200 SMA on the four-hour chart. The market seems vulnerable to the downside. However, more consolidation might be on the cards in the medium term.
WTI corrects from channel lows and target a break to the 21-DMA
The price of a barrel of oil has been inching higher in recent trade, advancing 0.23% on the session from a low of $55.91bbls to a high of $56.18bbls in WTI. However, the moves do not reflect the bigger picture considering the slide from the close proximity of the $59 handle at the end of last month.
The outlook is a mixed one for oil. To start the week, oil prices were buoyed following a rebound in manufacturing activity for China as well as the potential for OPEC and its allies to agree on deeper production cuts ahead of this week's meeting.
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