WTI OIL

WTI oil rose further and hit new highest level ($53.90) since mid-February in late Asian trading on Wednesday.
Positive sentiment persists despite the latest developments in the US and Europe where lockdowns were imposed on rising new infections and death toll, as well as the biggest coronavirus spike in China in months, as traders anticipate success of coronavirus vaccines.
Additional support to oil prices was provided by bigger than expected drop in oil inventories (API report on late Tuesday showed draw of 5.8 mln bls vs expected drop of 2.7 mln bls).
Tuesday’s close above $51.68 pivot (Fibo 76.4% of $62.63/$6.52) generated bullish signal, with today’s probe through pivotal 200WMA barrier ($53.21), adding to positive tone.
Close above the latter would confirm bullish stance and open way towards $54.62 (20 Feb lower top of  descend from $65.63).
Daily moving averages are in bullish setup and positive momentum continues to rise, supporting the advance, also attracted by the twist of monthly Ichimoku cloud ($59.54), but overbought RSI and stochastic warn that bulls may take a breather and consolidate before resuming.
Dips are expected to provide better levels to re-enter bullish market, with solid supports at $51.68 (broken Fibo 76.4%), $50.66 (rising 10DMA) and psychological $50 level, expected to hold dips and keep bulls intact.
Caution on dip below $50 and rising 20DMA ($49.33) which would signal deeper correction.
EIA weekly crude stocks report is in focus today with forecast for 2.67 mln bls draw against last week’s 8.01 mln bls drop.
Stronger than expected draw in oil inventories would additionally boost bullish sentiment and lift oil prices.

Res: 53.90; 54.62; 55.00; 55.50.
Sup: 53.21; 52.67; 52.04; 51.68.

Oil

Interested in Oil technicals? Check out the key levels

    1. R3 54.81
    2. R2 54.05
    3. R1 53.6
  1. PP 52.84
    1. S1 52.39
    2. S2 51.63
    3. S3 51.17

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.

EUR/USD News

GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.

GBP/USD News

Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index: Downside pressure alleviated above 91.00

DXY met sellers in the 91.00 neighbourhood on Monday and now retreats to the 90.50 region on turnaround Tuesday.

US Dollar Index News

Forex Majors

Cryptocurrencies

Signatures