Front-month WTI crude prices are down 0.9% at $63.30, earlier printing a one-week low at $63.23. This extends the correction from the 5-month high seen last Tuesday at $64.79.
This 5-day dip could be interpret so far as a correction in a bull market. Prices still up by over 8% from month-ago levels, and are up by 39.4% on the year-to-date following what was the biggest quarterly rise in crude prices in Q1 in over 10 years. OPEC-led supply curtailment, US sanctions against Iranian and Venezuelan oil exports along with still-strong global demand have been underpinning the market.
From the technical perspective, USOIL is held well above an increasing 20-day SMA, while 50-day SMA also extends further to the upside confirming the bullish momentum rise. The daily momentum indicators slipped slightly, however they hold at the high positive area, suggesting that this looks like a small pause of the 3-month steep rally.
Hence as for the past 3 months, every pullback was well supported by bulls, the overall sentiment stays bullish unless there is a strong breakout of the 200-day SMA at $61.10. Intraday Support is held at $63.00, while the medium term one is set at 20-day SMA, at $61.60.
A move to the upside above last week’s high at $64.70, could retest the next Resistance at $66.60 (January 2018 peak) and $68.80 (76.4% Fibonacci retracement set by the downleg from 77 highs).
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.