Oil Price Analysis: Massive move in WTI as JMMC meeting proves pivotal

WTI is trading 1.76% higher after the JMMC proved to be bullish.
The market has now pushed through USD 41.00 per barrel.

Rajan Dhall, MSTA FX Daily

WIT 4-hour chart

The OPEC+ JMMC panel agreed to extend the compensation period for overproduction till the end of December. This is big news as the market was waiting for the group to taper and for more oil supply to come back to the markets. OPEC is concerned over the impact of second virus wave according to the draft statement.

Looking at the chart it seemed like the price was starting to reverse and make lower highs and lower lows. After the announcement was released the green resistance just above USD 39.00 per barrel was taken out to the upside. Now the market needs to test the previous distribution and the point of control is the blue line at USD 42.50 per barrel.

The trend could now move back in the upward direction. The indicators are now moving higher as this spike continues. The MACD histogram is firmly green and the signal lines have crossed again to the upside. The Relative Strength Index is overbought but there is a small divergence. This suggests there could be a small breather coming up.

It will be interesting to see if the price breaks the blue resistance zone and if it does another high could be made in the medium term. Before that, there is an upward sloping trendline that could provide some resistance. This was broken but as we know trendlines are often retested. For now, the bull market continues.

Additional levels

WTI

Overview
Today last price	41.17
Today Daily Change	0.76
Today Daily Change %	1.88
Today daily open	40.41

Trends
Daily SMA20	40.79
Daily SMA50	41.22
Daily SMA100	37.83
Daily SMA200	41.11

Levels
Previous Daily High	40.58
Previous Daily Low	38.61
Previous Weekly High	39.78
Previous Weekly Low	36.43
Previous Monthly High	43.86
Previous Monthly Low	39.75
Daily Fibonacci 38.2%	39.82
Daily Fibonacci 61.8%	39.36
Daily Pivot Point S1	39.15
Daily Pivot Point S2	37.9
Daily Pivot Point S3	37.18
Daily Pivot Point R1	41.12
Daily Pivot Point R2	41.83
Daily Pivot Point R3	43.09

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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