WTI Price Analysis: Awaits acceptance above 21-DMA on the road to recovery


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  • WTI price is resuming the uptrend after correcting sharply on Tuesday.
  • Weaker US dollar, lower inventories offer support to the US oil.
  • Acceptance above 21-DMA at $103.24 is critical for resuming the uptrend.

WTI (NYMEX futures) is looking to extend the rebound above the $103 mark, having found strong bids below the $102 region.

The renewed upside in the US oil comes after the black gold tumbled roughly 5% on global growth concerns, which stoked fears over the demand for oil and its product. The International Monetary Fund (IMF) cut the 2022 global growth forecast by nearly 1 percentage point on Tuesday.

Investors seem to have looked past the IMF forecasts, as a 4.5 million barrels drawdown in the US API weekly crude stockpiles, Libyan fuel outage and lower OPEC+ output flare-up supply-side concerns and offer the much-needed support to the price of WTI.

Further, oil price also finds support from the gradual reopening of Shanghai city from the covid lockdown. Meanwhile, a broad-based retreat in the US dollar also remains one of the key reasons behind the rebound in the USD-sensitive oil.

From a near-term technical perspective, WTI’s corrective pullback saw the price close below the flattish 21-Daily Moving Average (DMA) at $103.24 for the first time this week.

With the 14-day Relative Strength Index (RSI), however, still holding above the midline, buyers remain hopeful for a meaningful recovery.

Therefore, daily closing above the latter is needed to trigger a sustained move higher towards the previous day’s high of $108.23. Ahead of that, the $105 round number will emerge as a tough nut to crack for bulls.

WTI: Daily chart

 

On the other side, if bulls fail to find a foothold above the 21-DMA, then a test of the 50-DMA support at $100.85 will be inevitable.

The next significant downside target will be then envisioned at the $100.00 psychological level.   

WTI: Additional levels to watch

WTI US OIL

Overview
Today last price 102.98
Today Daily Change 0.62
Today Daily Change % 0.61
Today daily open 102.33
 
Trends
Daily SMA20 103.25
Daily SMA50 100.57
Daily SMA100 89.2
Daily SMA200 81.57
 
Levels
Previous Daily High 108.24
Previous Daily Low 101.44
Previous Weekly High 107
Previous Weekly Low 92.65
Previous Monthly High 126.51
Previous Monthly Low 92.37
Daily Fibonacci 38.2% 104.04
Daily Fibonacci 61.8% 105.64
Daily Pivot Point S1 99.77
Daily Pivot Point S2 97.21
Daily Pivot Point S3 92.98
Daily Pivot Point R1 106.57
Daily Pivot Point R2 110.8
Daily Pivot Point R3 113.36

 

 

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