Current trend

On Monday, the price of WTI Crude oil shows moderate growth in view of a decline in production in Saudi Arabia in July by 200K barrels per day.

Another catalyst for the strengthening of quotes was the reduction in drilling activity in the United States. In addition, companies producing shale oil released negative quarterly reports. At the same time, OPEC decided to take advantage of the situation on the market and to increase production since July. However, the cartel keeps the balance by reducing total exports.

Today will be no important macroeconomic publications, so market participants expect a moderate strengthening of oil quotes until the end of the day. Tomorrow (at 22:30 GMT+2), API will publish data on the weekly change in reserves of commercial oil and oil products in the US. Given the increasing operating costs in the US, as well as a restrained OPEC strategy, in the short term, quotes are expected to strengthen.

Support and resistance

On H4 chart, the instrument approaches a strong resistance level of 69.00. Bollinger Bands are directed sideward, and the price range ins widening indicating the preservation of the upward trend. MACD is correcting in the neutral zone giving no clear signals for entering the market. Stochastic entered the overbought area, so a sell signal can be formed within a day.

Support levels: 65.17, 66.02, 66.63, 67.67, 68.12.

Resistance levels: 68.95, 69.92, 71.10, 72.22.

Trading tips

Long positions may be opened above the level of 69.00 with targets at 70.30, 70.60 and stop loss at 68.65. Implementation time: 1-3 days.

Short positions may be opened below the level of 67.60 with the target at 66.25 and stop loss at 68.05. Implementation time: 2-4 days.

WTI Crude Oil

BuySellSpread
65.85765.78473

Scenario

TimeframeWeekly
RecommendationsBUY STOP
Entry Point69.10
Take Profit70.30, 70.60
Stop Loss68.65
Support levels65.17, 66.02, 66.63, 67.67, 68.12, 68.95, 69.92, 71.10, 72.22

Alternative scenario

RecommendationsSELL STOP
Entry Point67.50
Take Profit66.25
Stop Loss68.05
Support levels65.17, 66.02, 66.63, 67.67, 68.12, 68.95, 69.92, 71.10, 72.22
WTI Crude Oil: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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