Crude WTI Price Appraisal: Failing to hold over $80 a barrel

Market Analytics and Considerations

Key Notes

• After failing to maintain its momentum above the significant resistance level of $80.00, its crude oil price has retreated.
• A symmetric triangular pattern indicates a decrease in oil price volatility.
• The price of crude oil had solidly risen it above 20- and 50-EMAs following a rebound movement.

In the Asian session, West Texas Intermediate (WTI) futures on the NYMEX were unable to stay just above significant resistance of $80.00. Notwithstanding an optimistic market environment, the price of oil has reversed and fell to about $79.46 a barrel.

Furthermore, a strengthening of the US Dollar Index supports selloff in the oil price (DXY). The Greenback Index is battling to continue rising beyond 101.60 after falling to a low of about 101.40.

On a daily level, crude oil is displaying a symmetric wedge chart shape, which implies a lessening in volatility. The graph shirt’s up instead of down trendline is established from the pivotal ebb of December 9 at $70.27, and the downward-sloping trendline is drawn from the peak place of Dec 5 at $82.74. The aforesaid charting trend is a balanced triangle that follows an eruption with broader intervals and high volume.

The oil price has made a rebound movement and is now trading just above 20- and 50-period Exponential Moving Averages (EMAs) at $77.57 and $79.00, which strengthens the upward filtering.

Traders are awaiting the announcement of just about any potential news for new clues, as demonstrated by the Relative Strength Index (RSI) (14) fluctuating from around 40.00–60.00 area.

The commodity will go higher toward the Dec 1 top at $83.30 and the Nov 17 peak near $85.00 if indeed the oil price breaches just above Jan 3 top at $81.56.

Crude oil price will instead be pushed forward towards the Dec 9 low at $70.27 if it crosses underneath the bottom on Jan 5 at $72.64 instead. Following giving up the cushion at the support at Dec 9 bottom at $70.27, the commodity would’ve been susceptible for the further losses to approach the 14 December 2021 trough at $69.32.

Major Technical levels