Crude oil selloff finds traction on the tighter market facts. Brent and WTI crude oil come close to closing the price gap brought about by OPEC’s unexpected supply decrease.
Technical Analysis of WTI and Brent Crude Oil
Crude oil (WTI): Finds Support at Previous to Closing
The recent selloff in crude oil markets has been met with some resistance at the long-term level of $77.40. The technical completion of a complete retracement of the current gap upward looks to be just shy of the signs of bearish exhaustion. Prior to the $75.75 level.
The bears may be losing momentum or need a second trigger to close the gap. As evidenced by subsequent candles with lower candle wicks that refuse to trade less. Markets may be better-balancing risks of growth a drop and reduced oil supply. As the most recent round of OPEC cuts takes effect in May, bringing the market temporarily back into equilibrium.
The next target to take into account in the case of a bearish extension is $77.40, which serves as immediate support. On the contrary hand, resistance starts to show up near the $79.10 mark, then it moves to the $82.50 area.
Brent narrowly misses price disparity reversal
After narrowly missing finishing a complete retracement of the price disparity by just a few ticks. Brent crude oil began a slight pullback. After the previous gains followed by an extension of the trend in early US trading. The chance of a pullback is increasing. Support appears close to the area of support at $79.89 and then at $77.Which is the 50% retracement of the important move from 2020 to 2022. Resistance is still present all the way up at $89, which seems to be quite far away.
The Net Short and Long Trader’s Positioning
The number of investors who are net-long is up 3.42% from the previous day and up 33.82% from the previous week. While the quantity of investors who are net short is up 3.94% from the previous day and down 30.59% from the previous week.
A smaller net-long than the day before, yet more net-long than the week prior, is the positioning. Our forecast for Oil – US Crude is still conflicted given our present mood and recent events.
