Oil Price Analysis: After yesterday's JMMC meeting WTI settles near $40 per barrel


  • WTI has dropped 0.82% on Friday after the excitement on Thursday.
  • The commodity looks set to close the week almost 9% higher.

WTI 1-hour chart

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. This means the output cuts will remain in place till December. Interestingly the  Saudi Arabia's energy minister went on the offensive, warning traders against heavily betting in the oil market, promising that those who gamble on prices will be hurt "like hell.". Make of that what you will.

Looking at the price action, since the price broke the triangle at the bottom of the chart there was a price rise to USD 41.44 per barrel. It was at this point the price bounced between two previously used levels at USD 40.50 and USD 41.44 per barrel. 

Moving forward, if the red support breaks there could be a move to the black support line near USD 39.50 per barrel but as the recent news has been positive, there could be a bounce at these support levels to the upside. 

The indicators had been positive and are in a retracement phase. The Relative Strength Index is making a bullish failure swing pattern. This is when the price waves make a higher low and the indicators waves make a lower low. It is normally a trend continuation pattern and for confirmation look for a break of USD 41.59 per barrel.

WTI

Additional levels

WTI

Overview
Today last price 40.87
Today Daily Change -0.34
Today Daily Change % -0.83
Today daily open 41.21
 
Trends
Daily SMA20 40.71
Daily SMA50 41.25
Daily SMA100 38.04
Daily SMA200 41.02
 
Levels
Previous Daily High 41.48
Previous Daily Low 39.68
Previous Weekly High 39.78
Previous Weekly Low 36.43
Previous Monthly High 43.86
Previous Monthly Low 39.75
Daily Fibonacci 38.2% 40.79
Daily Fibonacci 61.8% 40.37
Daily Pivot Point S1 40.1
Daily Pivot Point S2 38.99
Daily Pivot Point S3 38.29
Daily Pivot Point R1 41.9
Daily Pivot Point R2 42.6
Daily Pivot Point R3 43.71

 

 

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