Oil Price Analysis: WTI moves back to flat and once again trades above $40 per barrel

WTI trades flat on Friday but down 1.81% this week.
It has not been the most exciting day for price action with the price stabilising at USD 40 per barrel.

Rajan Dhall, MSTA FX Daily

WTI 1-hour chart

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December. This decision was due to the continuing issues surrounding the COVID-19 pandemic. Just recently the latest US rig count data was released but it has stalled within the recent median range and will not have a major impact on the current price.

Looking at the price, the market has now consolidated after the move from a low of USD 36.43 per barrel. Now the price seems to be stabilising at USD 40 per barrel. There is a floor and ceiling level around this consolidation between USD 39.39 and USD 40.58 per barrel.

A break of the black line could mean another test of the blue resistance zone wave high at USD 41.75 per barrel. On the downside, the next support beyond the red line lies at USD 38.50 per barrel.

The indicators are still pretty bearish. The MACD histogram is red and the signal lines have just moved through zero. The Relative Strength Index is under 50 and firmly sideways for now. This is a clear sideways trend and a break of the aforementioned consolidation levels could lead to a signal of the future direction.

Additional levels

WTI

Overview
Today last price	40.24
Today Daily Change	-0.01
Today Daily Change %	-0.02
Today daily open	40.25

Trends
Daily SMA20	40.01
Daily SMA50	41.2
Daily SMA100	38.85
Daily SMA200	40.54

Levels
Previous Daily High	40.43
Previous Daily Low	39.2
Previous Weekly High	41.75
Previous Weekly Low	37.08
Previous Monthly High	43.86
Previous Monthly Low	39.75
Daily Fibonacci 38.2%	39.96
Daily Fibonacci 61.8%	39.67
Daily Pivot Point S1	39.49
Daily Pivot Point S2	38.73
Daily Pivot Point S3	38.26
Daily Pivot Point R1	40.72
Daily Pivot Point R2	41.19
Daily Pivot Point R3	41.95

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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