VOT Research Report
Market Analytics and Considerations
WTI Technical view in Conflict on the Daily and Weekly Timeframes
Additional gains to beginning the week may be seen as a result of the morning star candlestick pattern.
Price could remain relatively steady if double top resistance is not overcome.
A REVIEW OF THE LAST WTI WEEK
Crude Oil has had, to put it mildly, an unusual week, with three days of large losses backed by a positive rebound. New demand concerns emerged in the first part of the week when China announced lockdowns in specific regions and US stockpiles came in stronger than anticipated, pushing oil prices back under $90 per barrel.
For the week ending November 4, according to US API statistics on oil stocks, inventories rose by 5.61 million barrels. The US Energy Information Administration (EIA) indicated a buildup of 3.9 million barrels during the same timeframe, with consensus predictions resting at 1.36 million barrels, and this was followed by it. The increase in inventory appeared to have a significant impact on WTI prices, which fell by about $10 from the weekly top to a weekly bottom of $84.78 per barrel.
WTI prices soared toward $90 a barrel as a result of a lower dollar following Thursday’s US Inflation Print and early-morning news surrounding China’s covid procedures. China eliminated a system that penalized airlines for bringing contagious disease cases into its countries, while also shortening the period of quarantine for visitors. The action is thought to have the potential to raise demand for oil as well as foreign travel.
TECHNICAL PERSPECTIVE
Weekly WTI Crude Oil Chart for Nov. 11, 2022
Source: TradingView
Following two weeks of increases, the weekly chart is expected to conclude the week with a bearish candlestick. It appears likely that the candle will close in a hanging man pattern, which typically indicates that there will be more decline to come. This would be contrary to the daily period.
Daily graph of WTI crude oil for Nov. 11, 2022
Chart – November 11, 2022
Source: TradingView
This week’s double top formation and evening star candlestick formation have made the daily timescale fascinating. Price fell to a low of $84.78 as a result, and after a positive comeback, WTI printed a morning star candlestick configuration, a sign of the current market indecision.
As the new week gets underway, the morning star candlestick formation and the loosening of COVID regulations should lead to some gains. The price may revisit the double top configuration near $93.64 if the positive momentum from Thursday continues, and a sustained break above that level would be required to test the psychological threshold of $100 per barrel. Nevertheless, given the likely weekly candle close mentioned above, WTI may form an anticipated triple top formation and stay inside the $93.64 to $84.78 area for the upcoming week.
