WTI bounces up from session lows at $39 and returns to $40

WTI futures bounce up from $39.05 and return to levels near $40.
Oil prices rise after the EIA reports a larger than expected decline on stocks.
Crude prices remain capped below $40 after having posted their best quarter in decades.

Guillermo Alcala FXStreet

Front-month WTI futures are picking up following a larger than expected decline of crude oil stocks to return to levels near $40.The West Texas Intermediate, which had dropped about $1.50 to session lows at $39.05, is regaining lost ground, buoyed by the EIA report.

Oil prices bounce up following oil stocks data

The larger than expected decrease in US oil stocks has given a fresh push to WTI futures. The Energy Information Administration (EIA) has reported a 7.2 million decline on US oil stocks on the week of June 26, beating expectations of a 710,000 drop and following a 1.4 million increase over the previous week.

WTI oil prices have remained trading between $37 and $40 during the last three weeks after having surged 91% in the previous two months to close the best quarterly performance since the third quarter of 1990 during the first Gulf War. Market hopes of a quick recovery have been supporting the oil rally, while concerns of a second coronavirus wave remain weighing on commodity prices.

From a technical point of view, WTI futures remain capped below $40.50 (Jun 24 high, Intra-day high) with next resistance areas at $41.61 (Jun. 23 high) and $44.00 (200-day SMA) On the downside, immediate support lies at 38.90 (Jun. 30 low) and below here, 37.00 (Jun. 17, 25 lows) and 34.34 (Jun.15 low).

WTI key levels to watch

WTI

Overview
Today last price	39.96
Today Daily Change	0.12
Today Daily Change %	0.30
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

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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