WTI crude oil continues to trend higher inside its rising channel on the 4-hour chart and seems to be enjoying stronger bullish momentum. A short-term rising trend line can be drawn connecting the lows since the start of the month. Price bounced off this short-term trend line once more, as it also lined up with the mid-channel area of interest around $115 per barrel and the 100 SMA dynamic support. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support levels are more likely to hold than to break. Stochastic is heading north, so price could follow suit while buyers have the upper hand. However, the oscillator is approaching the overbought region to reflect exhaustion among buyers. This suggests that the highs around the channel top and $120 per barrel mark might keep gains in check. On the other hand, RSI is heading lower to suggest that there is some bearish pressure in play. If so, crude oil might carry on with a larger correction to the channel bottom near the 200 SMA dynamic support and $110 per barrel mark. Crude oil is enjoying strong support from the EU decision to embargo most of Russian oil by the end of the year. Talks had been held up by Hungary, but it looks like the bloc is pushing through with its ban soon. However, an OPEC decision to increase their production targets might keep crude oil gains in check since this would ease fears of a global supply crunch. The cartel is rumored to be considering removing Russia from its output deal so that some member nations can be able to pump more oil. The upcoming NFP release might have an impact on overall market sentiment, likely impacting crude oil action before the week comes to a close.

SOURCE : https://tradertalks-net.translate.goog/s/1001?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil continues to cruise higher inside its rising channel on the 1-hour chart and is on its way to test the resistance at $70 per barrel. Stochastic has been indicating overbought conditions for some time, which means that buyers would likely book profits at this psychological level soon. Turning lower could spur a dip back to nearby support levels, like the channel bottom at $68 per barrel or the mid-channel area of interest at $69 per barrel. RSI is also approaching the overbought zone to signal exhaustion among buyers, and heading down could confirm that sellers are returning. The 100 SMA is above the 200 SMA, though, so the path of least resistance is to the upside. In other words, support levels are more likely to hold than to break. Resistance at the channel top might even be broken, leading to a steeper climb for crude oil. Analysts are expecting a draw of 1.0 million barrels in EIA stockpiles, which would be slightly lower compared to the earlier reduction of 1.7 million barrels. This could mean that demand has weakened a bit or that supply is elevated. Still, the commodity is able to draw support from the OPEC+ decision to maintain its output deal even as prices continue to rise. This could mean even more upside for crude oil as supply is constrained. The upcoming NFP release might also impact commodity price action since this affects risk appetite in general. Traders are on the lookout for more clues that the Fed could start tapering soon, and a strong jobs figure could do just that. A weak result, on the other hand, could dash hopes of tightening anytime soon, which might then be bullish for commodities like crude oil. After all, low borrowing costs for longer would prop up business and consumer activity.

SOURCE : https://tradertalks-net.translate.goog/s/1002?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil could be in for more gains as it completed an upside break and retest of its channel resistance. The Fibonacci extension tool shows how high prices could go from here. The 38.2% level is around the $36 per barrel mark then the 50% level is at $36.65 per barrel. Stronger bullish momentum could take crude oil up to the 78.6% Fib at $38 per barrel or the full extension at $39 per barrel. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the indicators is widening to reflect strengthening bullish momentum, and the 100 SMA seems to have held as dynamic support. RSI is turning lower without even hitting the overbought zone, however, so a return in selling pressure might be in order. Stochastic also looks ready to top out and price could follow suit as it heads south. Crude oil is on better footing lately as traders are hopeful that the OPEC could extend its output cuts in order to keep the market stable. The OPEC meeting with Russia is coming up soon and an agreement to limit production for much longer could mean more gains for the commodity price. Keep in mind that the cartel pushed up the timeline for its meeting to discuss the future of the group’s current oil production cut plans which are set to expire at the end of June. Apart from that, a surprise draw in crude oil stockpiles also supported the idea of demand picking up. The American Petroleum Institute reported a small crude oil inventory draw of 483,000 barrels for the week ending May 29 versus analysts expectations of a build of 3.038 million barrels and the earlier increase of 8.731 million barrels.

SOURCE : https://tradertalks-net.translate.goog/s/1003?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil is starting to trend higher but is in the middle of a correction. Using the Fibonacci retracement tool shows levels where more buyers might be waiting to join the uptrend. Price is finding support at the 38.2% retracement level that lines up with the 100 SMA dynamic support. A larger correction could reach the 50% Fib at $107.65 per barrel or the 61.8% level at $106.15 per barrel. If any of the Fibs hold as support, crude oil could resume the climb to the swing high at $114.02 per barrel or higher. Technical indicators seem to be in favor of a continuation of the climb. The 100 SMA just crossed above the 200 SMA to signal that the path of least resistance is to the upside. In other words, support levels are more likely to hold than to break. Stochastic is also reflecting oversold conditions or exhaustion among sellers, so turning higher would mean that buyers are ready to return. The oscillator has plenty of room to climb before reaching the overbought area. RSI appears to be moving sideways but has also recently pulled higher from the oversold region to reflect a return in bullish pressure. Crude oil could undergo another leg higher, as the Energy Information Administration reported a much larger than expected draw in stockpiles. This suggests that demand has picked up stronger than anticipated or that production is slowing. The EIA reported a draw of 2.8 million barrels for the week ending on June 24 and a reduction of 0.4 million barrels for the week ending on June 17. Earlier on, the American Petroleum Institute also reported a larger than expected draw of 3.799 million barrels. The commodity could continue to face upside, as investors worry about a potential energy crunch with Europe reducing its reliance on Russian commodities.

SOURCE : https://tradertalks-net.translate.goog/s/1004?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil is still trending higher inside a rising channel on its 4-hour chart. Price is bouncing off support and could be due for a move to the upside targets marked by the Fibonacci extension tool. The 38.2% level is close by at $73.79 per barrel then the 50% level lines up with the swing high at $74.35 per barrel. Stronger bullish momentum could take it up to the 61.8% level at $74.91 per barrel or the 76.4% level that lines up with the channel resistance at $75.60 per barrel. The full extension is at $76.72 per barrel. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. The 100 SMA also lines up with the channel bottom around $72 per barrel to add to its strength as support on another dip. Stochastic is already on the move up, so price could follow suit as buyers are in control. The oscillator has room to climb before reaching the overbought zone, so bullish pressure could stay in play for a bit longer. RSI is on middle ground to reflect consolidation. WTI crude oil is enjoying upside momentum, as the reopening of economies and businesses has lifted demand for fuel and energy commodities. However, concerns about the Delta variant and the latest set of lockdown measures are spurring concerns of another dip in commodities. The upcoming inventory data from the API and EIA should provide more insight into supply and demand conditions, as another larger than expected draw in stockpiles would mean more upside for crude oil. A surprise build, on the other hand, could spur losses. Also note that the OPEC-JMMC has a meeting this week, so any recommended adjustments to their output deal could lead to big moves as well.

SOURCE : https://tradertalks-net.translate.goog/s/1005?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil failed in its last two attempts to break below the $68 per barrel level and is now on its way to test the resistance around $70 per barrel. This creates a double bottom formation that signals a reversal from the downtrend might follow. The commodity price has yet to break above the neckline resistance and 200 SMA dynamic inflection point to confirm that a rally is in the works. If that happens, crude oil might be in for an uptrend that’s the same height as the chart pattern. However, technical indicators are hinting at potential losses. The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside or that the selloff is likely to resume. Also, stochastic is in the overbought zone to indicate exhaustion among buyers, so turning lower would mean that sellers are taking over. RSI appears to be heading south without even reaching the overbought area, hinting that bears are eager to return. In that case, another test of the lows or perhaps a break lower might confirm the continuation of a longer-term slide. Crude oil got a boost from a larger than expected draw of 9.6 million barrels as reported by the Department of Energy. Analysts had expected to see a reduction of 1.4 million barrels to follow the earlier decline of 3.8 million barrels. This follows a similar result from the American Petroleum Institute for the same reporting week, indicating that demand is likely picking up. Risk-taking could determine where crude oil prices might be headed for the rest of the week, as hawkish central bank rhetoric is keeping a lid on rallies for now. The US core PCE price index is due on Friday and could confirm if the Fed is in for another round of rate hikes soon.

SOURCE : https://tradertalks-net.translate.goog/s/1006?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil recently fell through the rising trend line support on its 4-hour time frame, indicating that a reversal from the uptrend is in the works. Price is completing its retest of the broken support, which might hold as a ceiling. The Fibonacci retracement tool shows that this lines up with the 50% level around the $113 per barrel mark. This also coincides with the dynamic resistance at the moving averages. On the subject of moving averages, the 100 SMA is above the 200 SMA for now, but the gap between the indicators has narrowed enough to reflect slowing bullish pressure. A downward crossover would confirm that bearish momentum is about to pick up. A larger correction could still reach the 61.8% Fib at $115.78 per barrel, but this might be the line in the sand for a pullback. If any of the Fibs hold as resistance, crude oil could fall back to the swing low at $101.23 per barrel or lower. Stochastic is already indicating overbought conditions or exhaustion among buyers, so turning lower would mean that sellers are taking over. RSI already looks ready to head south, which suggests that bears are eager to return. Crude oil could take cues from the inventory reports due from the EIA today. The agency is slated to report figures for the week ending June 17 and June 24 since it was not able to publish the results for the previous reporting period. The inventory report for the week ending June 17 is expected to show a draw of 1.6 million barrels, slightly smaller than the earlier reduction of 2.0 million barrels. A larger draw, however, would reflect stronger demand for the commodity or a slowdown in supply, which might then be bullish for crude oil prices. On the other hand, a surprise build or a smaller than expected draw might mean a continuation of the selloff.

SOURCE : https://tradertalks-net.translate.goog/s/1007?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp

WTI crude oil is trending higher on its 4-hour chart and looks ready for another dip to the rising channel support around $73 per barrel. If this holds, the rally could resume to the mid-channel area of interest or to new highs at the top of the channel around $75-76 per barrel. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the indicators is widening to reflect strengthening bullish momentum, and the 100 SMA is near the channel bottom to add another layer of support. Stochastic is heading down but dipping into the oversold region to signal exhaustion among sellers. Turning back up would mean that buyers are ready to return. RSI has more room to move south before reaching the oversold zone, so sellers could stay in the game for a bit longer. However, risk-off flows stemming from worries about the Delta variant could keep a lid on price gains. After all, this has been prompting another set of lockdown measures like in Australia, so demand for fuel and energy commodities could be subdued. The upcoming US NFP release might also impact crude oil direction later in the week, as traders would like to get more clues on whether or not the Fed could start tapering or tightening soon. Weak data could keep risk-taking in play, which would be bullish for crude oil, as this might mean a longer period of low borrowing costs.

SOURCE : https://tradertalks-net.translate.goog/s/1008?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=auto&_x_tr_pto=wapp