WTI struggles to extend the bounce above $41, eyes on EIA data

WTI: Will it retest monthly highs of $41.88 ahead of EIA data?
Risk-sentiment turns sour amid fresh coronavirus lockdown worries.
API data showed a build in the weekly US crude supplies.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) stalls its corrective declines from monthly tops of $41.88 and regains the $41 mark in the last hour, staging a quick rebound from daily lows of $40.86.

The US oil witnessed a quick uptick, as the buyers seek to regain near-term control amid expectations of a drawdown in Energy Information Administration (EIA) weekly US crude inventories data, due to be published later on Wednesday at 1430 GMT.

Despite the latest leg higher, the bearish pressure persists on the higher-yielding oil amid souring market mood, as the news of stricter restrictive coronavirus measures in the UK weighs.

The black gold also fails to benefit from the rally in the Treasury yields and broad-based US dollar weakness, in the wake of the renewed optimism on a likely US fiscal stimulus deal ahead of the November election.

The focus now remains on the EIA weekly crude stocks data and the broader market sentiment for near-term trading opportunities in oil.

WTI Technical levels

“…bullish reading on the 14-day relative strength index and the positive value on the MACD histogram, suggests scope for a breakout above $41.72. That would expose the 2020 high of $43.78 reached on Aug. 26. A bearish reversal would be confirmed if the resistance at $41.72 holds and sends prices back below Tuesday's low of $40.46,” FXStreet’s Analyst Omkar Godbole explained.

WTI Additional levels

WTI

Overview
Today last price	41.10
Today Daily Change	-0.04
Today Daily Change %	-0.10
Today daily open	41.26

Trends
Daily SMA20	40.19
Daily SMA50	40.77
Daily SMA100	40.4
Daily SMA200	38.66

Levels
Previous Daily High	41.93
Previous Daily Low	40.51
Previous Weekly High	41.56
Previous Weekly Low	39.31
Previous Monthly High	43.56
Previous Monthly Low	36.43
Daily Fibonacci 38.2%	41.38
Daily Fibonacci 61.8%	41.05
Daily Pivot Point S1	40.54
Daily Pivot Point S2	39.81
Daily Pivot Point S3	39.12
Daily Pivot Point R1	41.96
Daily Pivot Point R2	42.65
Daily Pivot Point R3	43.38

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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