WTI Price Analysis: Oil trapped in a pennant pattern on 1H

WTI's hourly chart shows a pennant pattern or contracting triangle.
A breakdown would signal bearish continuation and expose June lows.

Omkar Godbole FXStreet Contributor

West Texas Intermediate (WTI) crude has carved out a narrowing price range or pennant pattern on the hourly chart.

The upper end of the pennant pattern is currently seen at $37.37. A breakout above that level would mean the sell-off from the August high of $43.78 has ended, and the bulls have regained control.

Alternatively, a move below the lower end of the pennant, currently at $36.92, would imply a continuation of the sell-off from August's high and expose deeper support levels lined up at $34.36 (June 15 low).

At press time, a barrel of WTI is changing hands near $37.30.

Hourly chart

Trend: Bearish below $36.92

Technical levels

WTI

Overview
Today last price	37.30
Today Daily Change	0.03
Today Daily Change %	0.08
Today daily open	37.51

Trends
Daily SMA20	41.13
Daily SMA50	41.27
Daily SMA100	37.37
Daily SMA200	41.3

Levels
Previous Daily High	37.93
Previous Daily Low	37.08
Previous Weekly High	39.78
Previous Weekly Low	36.43
Previous Monthly High	43.86
Previous Monthly Low	39.75
Daily Fibonacci 38.2%	37.4
Daily Fibonacci 61.8%	37.6
Daily Pivot Point S1	37.08
Daily Pivot Point S2	36.66
Daily Pivot Point S3	36.24
Daily Pivot Point R1	37.93
Daily Pivot Point R2	38.35
Daily Pivot Point R3	38.78

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold extends fragile recovery from multi-week low as softer bond yields weigh on USD

Gold builds on its intraday ascent through the first half of the European session, and recovers further from a near six-week low, touched the previous day. A modest pullback in US Treasury bond yields prompts some US Dollar profit-taking, which is seen offering support to the commodity. However, the Federal Reserve's hawkish outlook, along with escalating Middle East tensions, should limit deeper losses for the safe-haven Greenback and cap the non-yielding bullion.

Ripple, Cardano, Dogecoin: Downside risk looms amid market uncertainties

Top altcoins, including Ripple (XRP), Cardano (ADA), and Dogecoin (DOGE), face imminent downside risk as prevailing upside momentum recedes toward neutral.

The Fed hawkishly hiked rates

The Fed proceeded with its first rate hike since 2023, as was widely expected. It should be noted that the bank hiked rates against US President Trump’s wishes. It’s characteristic that Fed Chair Warsh stated that 'Inflation is too high and has been for too long’, signalling his hawkish intentions.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.