[WTI Surpasses $79 Following Inventory Decline]
Current Price Trends: On Thursday, WTI crude oil prices rebounded to above $79 per barrel in response to a significant decrease in U.S. crude oil inventories.
The prices have faced considerable downward pressure, having dropped below $85 in April and experienced a drop of more than 10% in the past month.
Inventory Impact:
U.S. crude oil inventories last week fell by 1.4 million barrels to 459.5 million, exceeding the forecasted reduction of 1.1 million barrels and suggesting an increase in demand.
Technical Indicators:
Although the market continues its overall downtrend and trades below a crucial daily moving average, there are signs of support above the 200-day exponential moving average (EMA), with recent lows at $76.90.
Short-term Bullish Reversal:
In the previous trading session, a bullish candlestick formed on the daily chart, accompanied by bullish reversals on other short-term charts.
Bullish Momentum:
The market is challenging the psychological $80 resistance level. While the daily trend remains bearish below $82, momentum indicators since the last closing price suggest a potential shift towards bullishness, hinting at further upward revisions.
Major Resistance:
Breaking above $80 might lead to a retest of the $82 level, aligning with the 45-day EMA channel on the daily chart and challenging the resolution of the downward trend.
Intraday Support:
Established at $78.50, as long as the price stays at or above this level, the short-term momentum is considered bullish.
A key support line in the downward trend is yesterday’s low at $77.50, coinciding with the 200-day EMA channel.
A drop below this level could trigger further declines, while retesting these lows is crucial for assessing the strength of this support zone.
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PR