Crude Oil Futures: Scope for a bounce near term

Pablo Piovano FXStreet

Considering advanced prints from CME Group for crude oil futures markets, open interest shrank by around 35.7K contracts at the beginning of the week, reversing at the same time four consecutive daily builds. Volume, instead, went up by around 5.4K contracts, partially reversing the previous strong drop.

WTI faces initial resistance around the 200-day SMA

WTI prices dropped markedly at the beginning of the week, extending the move lower from Friday’s pullback. The daily downtick, however, was amidst shrinking open interest, which removes strength from a potential deeper decline and favours a near-term rebound instead. That said, bulls should now meet the next up-barrier a recent July peaks past the $77.00 mark per barrel, an area coincident with the key 200-day SMA.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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