WTI bulls keep the faith above the 38.2% Fibo


  • WTI dropped to the support line within the rising wedge where bulls are committing opening back prospects for the $60 handle.
  • WTI is currently trading at $56.95, down from a high of $57.69, holding above the lows of $56.72. 

WTI slipped from fresh highs on Thursday with the government report revealing that domestic supplies had climbed for a fifth straight week, negating some renewed signs of overall declines in global production vs the optimism that China and the U.S. are on the verge of a trade deal, supporting risk, oil and stocks. This sentiment, as well as the evidence of shrinking global supply because of OPEC-led production cuts, have driven prices of oil to their highest settlements since November.

However, the latest EIA report has shown that domestic crude supplies rose a fifth straight week, up 3.7 million barrels for the week ended Feb. 15, above the 3.5 million-barrel rise expected.

Eyes on trade 

On trade, analysts at ANZ Bank explained that China is reported to have offered to buy an extra USD30bn per year in agricultural products as part of trade negotiations:

"China’s proposal is part of ongoing offers to buy more agricultural and energy products to help reduce the US trade deficit and reach a deal. However, the US-China trade war is about much more than the trade deficit. Issues like intellectual property rights will also be discussed as part of negotiations, but these appear more difficult to tackle."

WTI levels

WTI holds above the 38.2% retracement of the October to December sell-off at 55.55 and the100-day MA at 56.69. The price is also now above the Ichimoku cloud with the price well below the trending lagging span that indicates that the bull trend is well entrenched. The mood is bullish and eyes are on 60.00. On the flip side, a break back below the 38.2% fibo would target 55.80 (S1) and the day's lows.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Editors’ Picks

EUR/USD extends gains to 1.1200 on sliding US yields

EUR/USD is trading close to 1.1200, in the wake of the European session as US yields continue falling. The European Parliament elections are in play and US durable goods are eyed.

EUR/USD News

GBP/USD off the highs as May announces stepping down on June 7th

GBP/USD is trading below 1.2700 after a quick rise to the upside as UK PM Theresa May announced she will step down on June 7th with Boris Johnson set to take over.

GBP/USD News

USD/JPY hangs near 1-week lows, just below mid-109.00s

The USD held on the defensive despite a goodish bounce in the US bond yields. Escalating US-China trade tensions continue to underpin JPY’s safe-haven demand. Traders now look forward to the US durable goods orders for some fresh impetus.

USD/JPY News

US Durable Goods Orders Preview: Sentiment is not enough

Durable goods orders expected to drop sharply after a strong March. Business investment thought to cool following the best quarter in nine months. Goods orders ex-transport have slowed despite strong consumer sentiment readings.

Read more

Gold consolidates in a range below weekly tops set on Thursday

Gold held steady through the early European session on Friday and was seen consolidating the overnight strong up-move to weekly tops.

Gold News

Editors' pick

EUR/USD extends gains to 1.1200 on sliding US yields

EUR/USD is trading close to 1.1200, in the wake of the European session as US yields continue falling. The European Parliament elections are in play and US durable goods are eyed.

EUR/USD News

GBP/USD off the highs as May announces stepping down on June 7th

GBP/USD is trading below 1.2700 after a quick rise to the upside as UK PM Theresa May announced she will step down on June 7th with Boris Johnson set to take over.

GBP/USD News

USD/JPY hangs near 1-week lows, just below mid-109.00s

The USD held on the defensive despite a goodish bounce in the US bond yields. Escalating US-China trade tensions continue to underpin JPY’s safe-haven demand. Traders now look forward to the US durable goods orders for some fresh impetus.

USD/JPY News

US Durable Goods Orders Preview: Sentiment is not enough

Durable goods orders expected to drop sharply after a strong March. Business investment thought to cool following the best quarter in nine months. Goods orders ex-transport have slowed despite strong consumer sentiment readings.

Read more

Gold consolidates in a range below weekly tops set on Thursday

Gold held steady through the early European session on Friday and was seen consolidating the overnight strong up-move to weekly tops.

Gold News

eur/gbp

central banks

eur/usd

gbp/usd

usd/jpy

aud/usd

Signatures

bitcoin

ethereum

ripple


  •  
  •  
  •  
  •  
  •