Oil Price Analysis: WTI moves back to flat and once again trades above $40 per barrel
|- WTI trades flat on Friday but down 1.81% this week.
- It has not been the most exciting day for price action with the price stabilising at USD 40 per barrel.
WTI 1-hour chart
It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December. This decision was due to the continuing issues surrounding the COVID-19 pandemic. Just recently the latest US rig count data was released but it has stalled within the recent median range and will not have a major impact on the current price.
Looking at the price, the market has now consolidated after the move from a low of USD 36.43 per barrel. Now the price seems to be stabilising at USD 40 per barrel. There is a floor and ceiling level around this consolidation between USD 39.39 and USD 40.58 per barrel.
A break of the black line could mean another test of the blue resistance zone wave high at USD 41.75 per barrel. On the downside, the next support beyond the red line lies at USD 38.50 per barrel.
The indicators are still pretty bearish. The MACD histogram is red and the signal lines have just moved through zero. The Relative Strength Index is under 50 and firmly sideways for now. This is a clear sideways trend and a break of the aforementioned consolidation levels could lead to a signal of the future direction.
-637366509853499750.png){kind=link}
Additional 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.