Oil Price Analysis: WTI stalling once again ahead of $40
|- WTI is trading 0.37% lower on Wednesday despite a draw in DoE's this afternoon.
-
Crude oil inventories dropped 7.195mln vs expectations of - 0.710mln.
Spot WTI 1-hour chart
WTI has moved lower today despite some bullish fundamental news. This week both API and DoE inventory levels showed a decline. The latter was released this afternnon (Wednesday) and produced a much larger draw than was expected. Also according to a WSJ article, Saudi Arabia are also set to start another price war with Angola and Nigeria.
Despite all of this news, the price declined on the day and USD 40.00 per barrel seems to be a major barrier. If the price is to move lower from here it might find some support at USD 39 per barrel as the level has been used on multiple occasions in the past.
There is a wedge chart formation marked by the diagonal lines in blue. This is not the strongest formation as the bottom of the pattern has only be tested two times. If the price does break below the pattern it could be a good indication that we are in fact headed for lower levels.
The Relative Strength Index is languishing in the mid-zone. The MACD indicator is mixed as the histogram is in the red but the signal lines are above the mid-point. Overall the trend is still higher but if there is to be a break of the USD 39 level the retracement could become deeper.
-637292247086729103.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.