The price of WTI crude oil changed its upward dynamics for the sideways movement, and for the last couple of week has been trading in a wide channel between the levels of 67.00 and 69.50.
The price slowed its growth amid significant strengthening in the US Dollar and a publication of April data on a growth of the number of oil rigs in the US. At the same time, strong fundamental picture sets preconditions for further monetary policy tightening by the Fed. Comments about it by the regulator, especially if mentioned with some targets, could substantially strengthen the Dollar and further pressure oil prices. In the end of this week, the Dollar will continue growing while the instrument is expected to fall to the lower border of an ascending channel at the levels of 64.10, 65.75. However, in the long-term conditions on the energy markets are likely to improve, which would send oil prices to new highs at 70.70, 71.50.
Today extra attention needs to be paid to data on the US labour market, to the Fed Interest Rate Decision and its Monetary Policy Statement.
Support and resistance
The technical indicators confirm further price growth in the long-term. The MACD keeps showing high volumes in the positive zone, the Bollinger bands are directed up.
Support levels: 67.00, 66.55, 65.75, 64.10, 63.25.
Resistance levels: 68.00, 69.50, 69.75, 70.10, 70.70, 71.50.
Long positions can be opened from current prices with targets at 70.70, 71.50 and stop-loss at 65.00.
WTI Crude Oil
|Take Profit||70.70, 71.50|
|Support levels||63.25, 64.10, 65.75, 66.55, 67.00, 68.00, 69.50, 69.75, 70.10, 70.70, 71.50|
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