WTI Oil outlook: Price rises above $84 for the first time in over two months

Slobodan Drvenica Windsor Brokers

WTI Oil

WTI oil price rose to nine-week high on Tuesday, in extension of strong Monday’s strong rally (up almost 2.5% for the day).

Increased demand due to summer driving season and persisting supply fears on heated geopolitical situation inflate oil price, which rose above $84 per barrel for the first time since late April.

Bullish technical studies on daily chart (MA’s in bullish setup / strong / positive momentum / price broke above daily cloud) contribute to positive outlook.

Bulls cracked $84.00 round-figure barrier but need to register a daily close above here to confirm signal for 85+ extension.

Meanwhile, bulls may pause for consolidation, with dips to find ground above daily cloud top ($81.87, reverted to solid support) to keep bulls intact and offer better buying opportunities.

Res: 84.03; 83.43; 85.00; 85.59.
Sup: 83.32; 82.27; 81.87; 81.60.

Interested in Oil technicals? Check out the key levels

1. R3 85.81
2. R2 84.47
3. R1 83.68
PP 82.34
1. S1 81.56
2. S2 80.22
3. S3 79.44

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 flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD makes a U-turn, challenges 1.3500

GBP/USD rapidly leaves behind Wednesday’s strong advance, putting the 1.3500 support to the test on Thursday. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold sticks to the bid bias, flirts with $5,200

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The precious metal adds to Wednesday’s optimism despite the Greenback trades in a firm fashion, although geopolitical tensions in the Middle East keep the yellow metal bid for now.