WTI: Upside attempts remain capped near $40.50

WTI trades bid amid risk-on mood, upbeat China PMI.
USD rebound, demand concerns weigh on WTI’s recovery.
Next of relevance remains the US Spending and Drilling data.

Dhwani Mehta FXStreet

Following a volatile session witnessed on Thursday, WTI (futures on Nymex) is trading in familiar ranges just above $40 mark so far this Friday.

The US oil faced rejection near 40.50 region on a few occasions earlier today, as it now adds 0.60% to trade at 40.16. Despite the range play, the black gold eyes the third straight monthly gains.

The barrel of WTI remains underpinned by a better market mood in Europe, as markets ignored mixed Eurozone inflation and growth numbers amid the end of the month repositioning. Also, oil bulls cheered the upbeat official Chinese Manufacturing PMI, which beat estimates with 51.1 in July. Note that China is the world’s second-biggest oil consumer.

The gains, however, remained capped by the broad-based US dollar recovery and coronavirus pandemic-induced concerns over the fuel demand. The greenback bounces-off two-year lows, as traders take profits off the table ahead of the US Personal spending data and ongoing fiscal stimulus negotiations.

Markets also look forward to the Baker Hughes US oil rigs count data for near-term trading opportunities in oil.

WTI technical levels to watch

“The energy benchmark dropped below the key $40.85/80 support confluence, now resistance, comprising 21-day SMA and an ascending trend line from June 25. The fall gains support from downward sloping RSI, which in turn directs the quote towards a 50-day SMA level of $39.00. However, the $40.00 threshold may offer an intermediate halt during the declines,” explains Anil Panchal, FXStreet’s Analyst.

WTI additional levels

WTI

Overview
Today last price	40.17
Today Daily Change	-0.14
Today Daily Change %	-0.35
Today daily open	40.47

Trends
Daily SMA20	40.89
Daily SMA50	38.89
Daily SMA100	32.1
Daily SMA200	43.72

Levels
Previous Daily High	41.5
Previous Daily Low	39.1
Previous Weekly High	42.52
Previous Weekly Low	39.99
Previous Monthly High	41.65
Previous Monthly Low	34.45
Daily Fibonacci 38.2%	40.02
Daily Fibonacci 61.8%	40.59
Daily Pivot Point S1	39.21
Daily Pivot Point S2	37.96
Daily Pivot Point S3	36.82
Daily Pivot Point R1	41.61
Daily Pivot Point R2	42.76
Daily Pivot Point R3	44.01

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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