- Oil falls for the third day in a row, on the back of broad US dollar strength.
- Market sentiment remains downbeat, weighing on stocks and commodities, benefitting safe-haven flows.
- WTI’s technical perspective is tilted to the upside.
Oil is down for the third day in a row. WTI is trading around $70.72, down some 1.49%, at the time of writing.
WTI falls on downbeat market sentiment
The market sentiment remains downbeat, with the US dollar trading higher, stocks and commodities lower as the market awaits the Fed decision later this week. Additionally, China’s Evergrande, the second-largest real-estate developer, is in financial distress, weighing on the market mood.
The rise in US oil rigs count and the expectations of the possibility of resuming operations in on-shore and off-shore installations in the Gulf of Mexico weighed on WTI. Meanwhile, the US Dollar Index, which measures the greenback’s value against a basket of six peers, is flat, at 93.19, adding pressure on oil prices.
WTI Price Forecast: Technical outlook
WTI is trading well above the daily moving averages, suggesting the uptrend is intact. The recent dip could suggest there is an ongoing correction. The first support level would be $70.00. A daily close below the latter could pave the way for further losses. The next demand area would be the confluence of the 50 and the 100-day moving averages (DMA), around $69.35. A break below of that area would expose the September 9 low at $67.56.
On the other hand, in the case of a daily close above $71.00, it could mean that WTI could resume its uptrend. The first supply zone on the way up would be $72.00. A decisive break of it could open the door for further gains. The following resistance would be the September 15 high at $73.11.
The Relative Strength Index is at 55.30, heading slightly lower, but it supports the bullish bias as it remains above the 50-midline.
KEY LEVELS TO WATCH
|Today last price||70.72|
|Today Daily Change||-1.07|
|Today Daily Change %||-1.49|
|Today daily open||71.79|
|Previous Daily High||72.47|
|Previous Daily Low||71.01|
|Previous Weekly High||72.88|
|Previous Weekly Low||69.3|
|Previous Monthly High||73.54|
|Previous Monthly Low||61.73|
|Daily Fibonacci 38.2%||71.57|
|Daily Fibonacci 61.8%||71.91|
|Daily Pivot Point S1||71.04|
|Daily Pivot Point S2||70.3|
|Daily Pivot Point S3||69.58|
|Daily Pivot Point R1||72.5|
|Daily Pivot Point R2||73.22|
|Daily Pivot Point R3||73.96|
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