The WTI Crude technical. seeks out a bull pattern. On both the weekly and daily timeframes, WTI is bullish, but it is still range bound. The Secret is in the $82 Handle.
WTI weekly Recap
The Wall Street Journal stated on Friday, that the United Arab Emirates (UAE) had an internal meeting about quitting OPEC+ and producing more crude oil.
Crude oil prices rose earlier in the week as Chinese manufacturing figures beat expectations. Reviving hopes for a demand spike. The Caixin services PMI statistics expanded at the quickest rate in six months on Friday morning.
Top Chinese officials are very pleased with the most current statistics. Saying that it has surpassed their predictions. Officials are reportedly aiming for an ambitious 6 percent growth rate by 2023.
WTI Monthly time frame Morning Star Candlestick Motif Suggestions of Uptrend Extension
Source: TradingView WTI Weekly Graphic Formation
The weekly graph is showing the signals of a Morningstar candlestick formation of the range’s bottom depicting activity since the year’s beginning. So, the 100-day MA is located higher at the $84 mark. WTI has been trapped between the $73 a-barrel mark. And, also the peak of the range rests at the $82 a-barrel mark.
If we are to see more upside in the coming week, a weekly candle finish above the $82 mark is necessary.
Source: TradingView. WTI Daily Graphic Formation
Technical Perspective
The price movement on the daily timescale is still intriguing and diverse. And, a lower high swing on February 13 and a higher bottom on February 23, respectively. Since the year’s beginning, the range mentioned above has continued to limit gains and losses.
The price movement on Friday was erratic, but, as evidenced by the reports that the UAE might leave OPEC+. With immediate resistance located at the 100-day MA. near the $80 mark, The price is presently trading just above 50-day MA.
Since November 18, 2022, prices have been unable to break above this crucial mark. Which is the top of the range above the $80 handle.
Given how long we have been underneath this level. If it needs a break above it, a daily candle closure could trigger a rally toward the 200-day moving average Which is situated around the $88.60 level.
A cautionary Approach is suggested for now
However, vigilance is still urged as there are some significant US data events coming up That include Fed Chair Jerome Powell’s statement and the NFP jobs report. Which could boost the USD’s resilience and limit gains.
