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WTI Price Analysis: Oil buyers run out of steam near $72.00 as markets brace for data

  • WTI clings to mild gains around two-week high, up for the third consecutive day.
  • Clear break of six-week-old falling resistance line, weekly bullish channel keep Oil buyers hopeful.
  • Overbought RSI, cautious mood ahead of key US data prod energy bulls.
  • WTI crude oil sellers need to break $70.70 to retake control.

WTI crude oil struggles to refresh a two-week high while sticking to mild gains around $72.00 amid early Thursday in Europe. In doing so, the black gold remains within a one-week-old rising trend channel as it makes rounds to the weekly top.

The oil benchmark’s latest upside also takes clues from the clear upside break of a previously important resistance line stretched from late May, as well as the quote’s run-up beyond the 61.8% Fibonacci retracement of May 24 to June 12 downside, near $71.70-65 at the latest.

Further, bullish MACD signals also favor black gold buyers.

However, the overbought RSI conditions and the nearness to the one-week-old rising channel’s top line, close to $72.40 by the press time, challenge the WTI bulls. Following that, the late June swing high of around $72.70 can act as the final defense of the oil bears.

Meanwhile, the market’s positioning for the US ISM Services PMI and ADP Employment Change for June, as well as the Eurozone Retail Sales for May, seem to play its role in challenging the Oil traders of late.

That said, a downside break of $71.65 can trigger a quick fall of the WTI price towards a $70.80 support confluence including the 50% Fibonacci retracement and 200-SMA.

Though, the aforementioned bullish channel’s support line, close to $70.70 at the latest, can challenge the Oil bears afterward.

WTI crude oil: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price72.03
Today Daily Change0.18
Today Daily Change %0.25%
Today daily open71.85
 
Trends
Daily SMA2070.2
Daily SMA5071.25
Daily SMA10073.74
Daily SMA20077.33
 
Levels
Previous Daily High72.21
Previous Daily Low70.45
Previous Weekly High71.11
Previous Weekly Low67.14
Previous Monthly High74.36
Previous Monthly Low66.95
Daily Fibonacci 38.2%71.54
Daily Fibonacci 61.8%71.13
Daily Pivot Point S170.8
Daily Pivot Point S269.74
Daily Pivot Point S369.04
Daily Pivot Point R172.56
Daily Pivot Point R273.27
Daily Pivot Point R374.32

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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