WTI Oil outlook: Bulls pause under cloud top after strong advance in past two days

Slobodan Drvenica Windsor Brokers

WTI Oil

WTI oil price eases from new five-week high on Wednesday after advancing over 6% in past two days.

Partial profit taking after strong rally was caused by technical signals, as well as on uncertainty over President Trump’s latest threats of imposing a secondary tariffs of 100% to all those importing oil from Russia.

The latest rally was repeatedly capped under the top of thick daily cloud as the price penetrated cloud on Monday and rose near its top on Tuesday, generating strong bullish signal.

Daily studies improved (Tenkan/Kijun-sen bull-cross /14-d momentum broke into positive territory) but overbought stochastic and sideways-moving RSI suggest that bulls are like to take a breather and look for fresh signal.

Dips should find solid supports at $67.96/85 (broken 200DMA / Fibo 38.2% of $64.72/$69.78 upleg) to mark a healthy correction ahead of fresh attack at cloud top and nearby psychological $70 barrier, violation of which to signal bullish continuation.

Otherwise, deeper pullback would keep bulls on hold, but with limited downside risk as long as the price stays above daily Tenkan-sen / 50% retracement of ($67.25).

Return below cloud base ($66.65) will be bearish.

Unexpected rise in US crude stocks (API report showed 1.53M build vs 2.5M draw forecast) contributed to weaker tone today, with release of EIA crude inventories report (-2.3M fc vs -3.16M previous) being in focus today.

Res: 69.62; 70.00; 70.92; 71.33.
Sup: 68.59; 67.96; 67.25; 66.65.

Interested in WTI technicals? Check out the key levels

1. R3 73.27
2. R2 71.33
3. R1 70.12
PP 68.18
1. S1 66.97
2. S2 65.03
3. S3 63.82

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD retakes 1.1800 on renewed USD weakness

EUR/USD gains ground after three days of losses, re-attempting 1.1800in the European trading hours on Thursday. The US Dollar sees fresh selling interest across the board, despite hawkish Fed Minutes, as the market mood improves and supports the pair. US Jobless Claims data, Fedspeak and geopolitics remain in focus.

GBP/USD recovers above 1.3500 amid better mood

GBP/USD finds fresh demand and rises back above 1.3500 in the European session on Thursday. Improving risk sentiment and renewed US Dollar weakness are helping the pair recover ground ahead of mid-tier US data releases and Fedspeak.

Gold clings to gains above $5,000 amid safe-haven flows and Fed rate cut bets

Gold sticks to modest intraday gains, above the $5,000 psychological mark, through the first half of the European session, though it lacks bullish conviction amid mixed cues. The third round of US-mediated negotiations between Ukraine and Russia concluded in Geneva on Wednesday without any major breakthrough.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.