WTI corrects from channel lows and target a break to the 21-DMA


  • Outlook is a mixed one for oil which is attempting to correct the downside.
  • Trade headlines continue to have the potential to make or break markets. 
  • Markets looks for OPEC+ to consider deeper cuts.
  • Bulls are committing at the channel's support line and have eyes for 21-DMA. 

The price of a barrel of oil has been inching higher in recent trade, advancing 0.23% on the session from a low of $55.91bbls to a high of $56.18bbls in WTI. However, the moves do not reflect the bigger picture considering the slide from the close proximity of the $59 handle at the end of last month. 

The outlook is a mixed one for oil. To start the week, oil prices were buoyed following a rebound in manufacturing activity for China as well as the potential for OPEC and its allies to agree on deeper production cuts ahead of this week's meeting. The news sentiment comes in contrast to prior Saudi comments where they were no longer willing to compensate for OPEC cheaters. In other weekend news from Iraq, it suggesting OPEC+ will consider deeper cuts, supporting a correction in oil prices.

Trump will increase tariffs if a trade deal with China cannot be reached

Meanwhile, on the trade front, US Commerce Secretary Ross overnight said Trump will increase tariffs if a trade deal with China cannot be reached. This was a blow for markets which sent US benchmarks ono the weaker side of the balancing scales and consequently hurt oil prices as well. The weak US economic data also added to the gloom with US construction spending in November falling for the fourth consecutive month. 

WTI levels

The price is embarking on a correction of the slide from below the 200 and 50hour moving averages. The rising channel's rules would expect the price to be supported ta the overnight session lows, and bulls will look for a close above the 21-day moving average located at 56.77 for prospects of the 59 handle again. A break of trendline support opens risk to end of October lows at 55 the figure. 

WTI

Overview
Today last price 56.2
Today Daily Change 0.15
Today Daily Change % 0.27
Today daily open 56.05
 
Trends
Daily SMA20 57.24
Daily SMA50 55.67
Daily SMA100 55.84
Daily SMA200 57.64
 
Levels
Previous Daily High 56.73
Previous Daily Low 55.59
Previous Weekly High 58.72
Previous Weekly Low 55.07
Previous Monthly High 58.76
Previous Monthly Low 54.12
Daily Fibonacci 38.2% 56.29
Daily Fibonacci 61.8% 56.03
Daily Pivot Point S1 55.52
Daily Pivot Point S2 54.98
Daily Pivot Point S3 54.38
Daily Pivot Point R1 56.66
Daily Pivot Point R2 57.26
Daily Pivot Point R3 57.8

 

 

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