Oil Price Analysis: WTI stalling once again ahead of $40

WTI is trading 0.37% lower on Wednesday despite a draw in DoE's this afternoon.
Crude oil inventories dropped 7.195mln vs expectations of - 0.710mln.

Rajan Dhall, MSTA FX Daily

Spot WTI 1-hour chart

WTI has moved lower today despite some bullish fundamental news. This week both API and DoE inventory levels showed a decline. The latter was released this afternnon (Wednesday) and produced a much larger draw than was expected. Also according to a WSJ article, Saudi Arabia are also set to start another price war with Angola and Nigeria.

Despite all of this news, the price declined on the day and USD 40.00 per barrel seems to be a major barrier. If the price is to move lower from here it might find some support at USD 39 per barrel as the level has been used on multiple occasions in the past.

There is a wedge chart formation marked by the diagonal lines in blue. This is not the strongest formation as the bottom of the pattern has only be tested two times. If the price does break below the pattern it could be a good indication that we are in fact headed for lower levels.

The Relative Strength Index is languishing in the mid-zone. The MACD indicator is mixed as the histogram is in the red but the signal lines are above the mid-point. Overall the trend is still higher but if there is to be a break of the USD 39 level the retracement could become deeper.

Additional levels

WTI

Overview
Today last price	39.95
Today Daily Change	0.11
Today Daily Change %	0.28
Today daily open	39.84

Trends
Daily SMA20	38.52
Daily SMA50	31.4
Daily SMA100	33.7
Daily SMA200	45.25

Levels
Previous Daily High	40.1
Previous Daily Low	38.9
Previous Weekly High	41.65
Previous Weekly Low	37.18
Previous Monthly High	41.65
Previous Monthly Low	34.45
Daily Fibonacci 38.2%	39.64
Daily Fibonacci 61.8%	39.36
Daily Pivot Point S1	39.13
Daily Pivot Point S2	38.42
Daily Pivot Point S3	37.93
Daily Pivot Point R1	40.32
Daily Pivot Point R2	40.81
Daily Pivot Point R3	41.52

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.

EUR/USD gains traction to near 1.1800 as tariff uncertainty weighs on US Dollar

The EUR/USD pair holds positive ground around 1.1795 during the early Asian session on Tuesday. The US Dollar weakens against the Euro amid US tariff uncertainty. The release of the US January Producer Price Index report will be in the spotlight later on Friday.

GBP/USD treads water near 1.3500 as BoE-Fed divergence debate stalls

GBP/USD spent Monday spinning in place as market participants await a fresh catalyst to break the pair out of its recent range. The BoE's February hold came with a surprisingly dovish 5-4 split, and UK Consumer Price Index data last week showed inflation easing to 3.0%, reinforcing the case for earlier rate cuts, with most economists now looking to April or March for the next move.

Gold climbs above $5,200 on geopolitical tensions, trade uncertainty

Gold price jumps to around $5,230 during the early Asian session on Tuesday. The rally of the precious metal is bolstered by heightened geopolitical tensions and global trade uncertainty following US tariff decisions. Traders brace for the US January Producer Price Index report on Friday for fresh impetus.

Solana DeFi platform Step Finance to close operations following treasury hack

The Solana based decentralized finance platform Step Finance announced it will end all operations effective immediately following a breach that drained its treasury.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.