WTI oil outlook: Oil price maintains bullish bias but negative impact from new wave of virus limits gains
|WTI OIL
WTI oil price jumps above $42 on Friday, focusing November’s peak at $43.03.
Overall sentiment remains positive as the contract is on track for the third consecutive weekly gain, although the upside attempts remain limited on oversupply, demand concerns over surge in coronavirus cases and renewed lockdowns.
On the other side, hopes for effective Covid-19 vaccine and that OPEC+ group will delay planned production increase, continue to underpin oil prices.
In addition, signs that talks about new US stimulus package would resume, bring more optimism among traders.
Daily studies remain positive but momentum crests and warns that another attempt towards post-pandemic recovery peak ($43.75) may lose steam.
Bulls probe again through 55WMA ($42.02) but another failure to register weekly close above would be initial warning.
Near-term bias is expected to remain with bulls while the price stays above rising 10DMA ($41.28) which tracks the action since Nov 9, while psychological $40 level (also daily cloud top and Nov 13/16 double-bottom) marks key support, loss of which would bring bears in play.
Res: 42.65; 43.03; 43.17; 43.75.
Sup: 41.58; 41.28; 40.78; 40.46.
Interested in WTI technicals? Check out the key levels
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.