VOT Research Desk
Nov 5
Analytics and Recommendations
Following rumors that China will loosen lockdowns, the price of crude oil skyrockets.
US Crude (WTI) crosses the $90 level before encountering resistance near long-term support.
Futures for Brent Crude oil break $95 per barrel; is $100 restored?
After anticipation of lessening China lockdowns sparked a rise in commodities, prices for crude oil are steadily rising. Both WTI and Brent rose, pushing oil futures higher as expectations for demand increased due to reports of a likely reopening of the world’s largest economy.
The fundamental environment acted as a stimulus for bullish momentum on Friday, causing US Crude (WTI) futures to rise and settle over $92.00.
The latest full-bodied candle on the daily chart below indicates an aggressive move by buyers that helped them to pass $90.00. Price gains again into the $95.00 psychological threshold could be possible if bullish momentum picks up, as the trend line support from the September low has firmed up at about $88.00.
Crude Oil daily chart
WTI dropped from the June high of 123.68 to a low of $76.5 in September after a four-month sell-off, eventually recovering back above $80.00. The same technical level that supported WTI in 2013 and 2014 are currently helping to restrain the upward movement at $92.50 as a strong rebound drove price action higher.
A rise and a retest of $97.55 (the 61.8% Fibonacci of the 2001-2008 move), together with resistance from the $95.00 level and the October top of $93.64, might push WTI back up to the significant $100 level.
Technical parameters and Indicators- Weekly
Pivot Points
Pivot Points
|
Name |
S3 |
S2 |
S1 |
Pivot Points |
R1 |
R2 |
R3 |
|
Classic |
76.59 |
79.61 |
83.75 |
86.77 |
90.91 |
93.93 |
98.07 |
|
Fibonacci |
79.61 |
82.35 |
84.03 |
86.77 |
89.51 |
91.19 |
93.93 |
|
Camarilla |
85.93 |
86.59 |
87.24 |
86.77 |
88.56 |
89.21 |
89.87 |
|
Woodie’s |
77.17 |
79.90 |
84.33 |
87.06 |
91.49 |
94.22 |
98.65 |
|
DeMark’s |
– |
– |
85.26 |
87.53 |
92.43 |
– |
– |
Technical Indicators
|
Name |
Value |
Action |
|
RSI(14) |
54.527 |
Neutral |
|
STOCH(9,6) |
57.698 |
Buy |
|
STOCHRSI(14) |
100.000 |
Overbought |
|
MACD(12,26) |
0.200 |
Buy |
|
ADX(14) |
20.691 |
Neutral |
|
Williams %R |
-14.962 |
Overbought |
|
CCI(14) |
92.2991 |
Buy |
|
ATR(14) |
8.0864 |
Less Volatility |
|
Highs/Lows(14) |
2.0621 |
Buy |
|
Ultimate Oscillator |
55.636 |
Buy |
|
ROC |
-1.374 |
Sell |
|
Bull/Bear Power(13) |
1.8320 |
Buy |
|
Buy: 6 Sell: 1 Neutral: 2 Summary: BUY |
||
Moving Averages
|
Period |
Simple |
Exponential |
|
MA5 |
88.31 |
87.87 |
|
MA10 |
85.42 |
87.39 |
|
MA20 |
88.48 |
88.30 |
|
MA50 |
86.93 |
84.75 |
|
MA100 |
73.10 |
76.51 |
|
MA200 |
60.72 |
67.41 |
|
Buy: 12 Sell: 0 Summary: STRONG BUY |
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