WTI Price Analysis: Bulls target $41 mark amid a potential bull flag


  • WTI bulls consolidate before the next push higher.
  • A test of $41 is on the cards amid a favorable technical view.
  • US oil trades above all major hourly SMAs ahead of API data.

WTI (August futures on NYMEX) is consolidating Monday’s nearly $2.5 recovery rally, as the bears continue to guard the 40.00 barrier in Asia this Tuesday.

The retreat, however, remains limited by the risk-on market mood and expectations of a fall in the US crude stockpiles from record highs. The American Petroleum Institute (API) is due to publish its weekly crude stocks change data later today at 2030 GMT.

From a near-term technical perspective, the US oil has charted a bullish flag formation on the hourly chart, with the pattern breakout to be confirmed only on an hourly closing above the 39.65 level.

A bullish breakout would open doors towards the test of the 41 handle and beyond, given the length of the flag pole equating to about $2.30. The hourly Relative Strength Index (RSI) is trading around 60.00, suggesting more room for upside should the bulls regain control.

The path of least resistance appears to the upside, as the black gold trades well above all the major hourly Simple Moving Averages (HMA).

Meanwhile, any pullback could meet fresh demand near 39.20/39.00 region, the confluence of the falling trendline support, horizontal 200-HMA and upward sloping 100-HMA.

Further south, strong support is located at 38.75, where the 100 and 50-HMAs intersect.

WTI hourly chart

WTI additional levels

WTI

Overview
Today last price 39.46
Today Daily Change -0.20
Today Daily Change % -0.50
Today daily open 39.66
 
Trends
Daily SMA20 38.38
Daily SMA50 31.04
Daily SMA100 33.81
Daily SMA200 45.34
 
Levels
Previous Daily High 39.92
Previous Daily Low 37.6
Previous Weekly High 41.65
Previous Weekly Low 37.18
Previous Monthly High 35.92
Previous Monthly Low 19.61
Daily Fibonacci 38.2% 39.03
Daily Fibonacci 61.8% 38.49
Daily Pivot Point S1 38.2
Daily Pivot Point S2 36.73
Daily Pivot Point S3 35.87
Daily Pivot Point R1 40.53
Daily Pivot Point R2 41.39
Daily Pivot Point R3 42.86

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures