WTI outlook: Takes a breather after hitting fresh 2019 high

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil price consolidates under new 2019 high at $66.58 (posted on Tuesday) as bulls started to reduce pace on reports that oil markets remain adequately supplied, despite sanctions on Iran and OPEC+ output reduction.
Surprise build of US crude stocks (API report on Tuesday showed rise of 6.9 mln bls vs 3 mln bls draw previous week) added to negative signals, along with overbought daily studies.
Consolidation was so far narrow as daily RSI / stochastic are still holding in overbought territory, with markets focusing on today’s release of EIA crude inventories report (1.2 mln bls build f/c vs 1.3 mln bls draw previous week) for fresh signals.
Overall structure remains bullish and suggests limited dips as positioning for fresh attempts higher, with rising 10SMA ($64.55) expected to contain and prevent deeper correction.

Res: 66.58; 67.24; 67.67; 68.73
Sup: 65.77; 65.57; 64.77; 64.32

Interested in WTI technicals? Check out the key levels

1. R3 67.64
2. R2 67.1
3. R1 66.64
PP 66.1
1. S1 65.64
2. S2 65.1
3. S3 64.64

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.

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