• WTI price snaps the corrective mode from seven-year highs, recaptures $85.
  • PBOC LPR cut, weaker US dollar and risk reset underpin the black gold.
  • Acceptance above $85.50 is critical to take on the multi-year top once again.

WTI (NYMEX futures) is trading close to $85.50, having staged a solid comeback from a drop to near the $84.60 region.

The correction in oil prices came on the heels of a dour mood on Wall Street overnight, as rallying Treasury yields weighed on the sentiment while traders fret over the Fed rate hike outlook.

The resumption of the key Iraq-Turkey oil pipeline in full flow, after the explosion, also collaborated with the pullback in WTI alongside discouraging monthly report from the International Energy Agency (IEA).

However, the latest recovery in the risk sentiment, in response to the Chinese central bank’s mortgage rate cuts announcement, helps oil price resume the upbeat momentum.

Going forward, it remains to be seen if the US oil can sustain its uptrend, given that the 14-day Relative Strength Index (RSI) holds within an overbought territory.

If sellers fight back control, then a break below the daily lows of $84.59 is needed to extend the correction. The round level of $84 will then come into play.

On the flip side, buyers need to find a strong foothold above $85.50 to initiate a fresh upswing towards the multi-year highs of $86.67.

WTI: Daily chart

WTI: Additional levels to watch

WTI US OIL

Overview
Today last price 85.40
Today Daily Change 0.06
Today Daily Change % 0.07
Today daily open 85.33
 
Trends
Daily SMA20 78.69
Daily SMA50 75.22
Daily SMA100 76.04
Daily SMA200 72.17
 
Levels
Previous Daily High 86.68
Previous Daily Low 84.99
Previous Weekly High 83.74
Previous Weekly Low 77.44
Previous Monthly High 77.26
Previous Monthly Low 62.34
Daily Fibonacci 38.2% 86.03
Daily Fibonacci 61.8% 85.63
Daily Pivot Point S1 84.65
Daily Pivot Point S2 83.97
Daily Pivot Point S3 82.96
Daily Pivot Point R1 86.34
Daily Pivot Point R2 87.36
Daily Pivot Point R3 88.04

 

 

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