Oil prices taking up the bid within bearish trend


  • Oil prices have been rising on the day, but technically trapped in a bar trend.
  • Fundamentals are a weight and focus is on the downside. 

Oil prices have been rising on the day, with WTI rising from a low of $53.71 to a high of $55.05, +2.31% on the day so far.  Futures also rose on Tuesday, with U.S. prices up by more than 2%, on OPEC production cuts noise and expectations for a sizable weekly decline in U.S. crude supplies.  October West Texas Intermediate oil CLV19, +2.52% climbed $1.29, or 2.4%, to settle at $54.93 a barrel on the New York Mercantile Exchange

The Organization of the Petroleum Exporting Countries' Joint Ministerial Monitoring Committee pegged July compliance with pledged output cuts at 159% which was the highest monthly compliance rate so far this year. Meanwhile, ahead of government supply data due tomorrow,  a survey of analysts polled by S&P Global Platts showed that there are expectations for a 4.7 million-barrel decline in last week's U.S. crude stocks.

Geopolitical front

On the geopolitical front, besides the conflicting signals about the prospect thawing US-Sino tensions, the G-7 gathering saw some additional geopolitical drama develop with Iran with foreign minister Zarif making a showing. "While this prompted speculation that it could lead to a resolution in the conflict, which would see Iranian oil flow back into the market, the reiteration that limiting missile testing was off-limits promptly quelled those hopes," analysts at TD Securities argued.

WTI levels

Despite the comeback, the price is deteriorating in a broader view of the charts, pressured below the descending resistance line, pressured below the near term GMMA band now below the 20-daily moving average. With a focus on the downside and having taken out the trendline support, bears can now target a drop to the 52 handle and the 61.8% Fibo at 51.70 on the wide.

WTI

Overview
Today last price 54.93
Today Daily Change 1.18
Today Daily Change % 2.20
Today daily open 53.75
 
Trends
Daily SMA20 55.02
Daily SMA50 56.53
Daily SMA100 58.36
Daily SMA200 56.18
Levels
Previous Daily High 55.19
Previous Daily Low 52.94
Previous Weekly High 57.08
Previous Weekly Low 53.22
Previous Monthly High 60.99
Previous Monthly Low 54.87
Daily Fibonacci 38.2% 54.33
Daily Fibonacci 61.8% 53.8
Daily Pivot Point S1 52.73
Daily Pivot Point S2 51.71
Daily Pivot Point S3 50.48
Daily Pivot Point R1 54.98
Daily Pivot Point R2 56.21
Daily Pivot Point R3 57.23

 

 


 

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