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WTI Price Analysis: Prints a fresh nine-day low at $67.60 as global recession fears deepen

  • The oil price has printed a fresh nine-day low at $67.60 amid bleak economic forecasts.
  • In the battle against stubborn inflation, central banks are sharpening their quantitative measures by hiking interest rates.
  • Oil prices are consolidating in a range of $66.95-74.70 for one-and-a-half months.

West Texas Intermediate (WTI), futures on NYMEX, have refreshed a nine-day low at $67.60 as investors are expecting further decline in the global demand for oil due to the continuation of policy-tightening by central banks.

In the battle against stubborn inflation, central banks are sharpening their quantitative measures by hiking interest rates whose consequences are weighing on global economic prospects.

The US Dollar Index (DXY) is in a corrective mode after printing an intraday high at 103.17. The USD index has dropped to near 102.80, however, the upside bias is still solid amid the risk-aversion theme. Going forward, global PMI figures will provide further guidance for the oil price.

Oil prices are consolidating in a range of $66.95-74.70 for one-and-a-half months on a daily scale. Broader rangebound performance indicates a sheer contraction in volatility but is followed by a breakout in the same. The 50-period Exponential Moving Average (EMA) at $72.20 has been acting as a stiff barricade for the oil bulls.

The Relative Strength Index (RSI) (14) is on the verge of slipping into the bearish range of 20.00-40.00. An occurrence of the same would trigger the bearish momentum.

A downside move below May 31 low at $67.12 will drag the asset toward the $65.00 support followed by the ultimate support around $64.31.

In an alternate scenario, a solid recovery above May 24 high at $74.70 will drive the asset toward April 28 high at $76.84. Further recovery above the latter would expose the oil price to April 26 high at $77.86.

WTI daily chart

WTI US OIL

Overview
Today last price67.67
Today Daily Change-1.89
Today Daily Change %-2.72
Today daily open69.56
 
Trends
Daily SMA2070.76
Daily SMA5072.82
Daily SMA10074.41
Daily SMA20077.87
 
Levels
Previous Daily High72.64
Previous Daily Low68.97
Previous Weekly High72.02
Previous Weekly Low66.95
Previous Monthly High76.61
Previous Monthly Low64.31
Daily Fibonacci 38.2%70.37
Daily Fibonacci 61.8%71.24
Daily Pivot Point S168.14
Daily Pivot Point S266.72
Daily Pivot Point S364.47
Daily Pivot Point R171.81
Daily Pivot Point R274.06
Daily Pivot Point R375.48

Author

Sagar Dua

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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