Crude oil WTI: Downside contained?
Oil WTI failed to break over the 50-day moving average during the session on January 3, and sellers returned after the price topped $80 per barrel.
This resulted in a rapid drop to 773/BBL, making it an interesting area to assess the strength of buyers on dips once again. Remember that the US is actively purchasing crude oil at 67-72 dollars per barrel range in order to replenish its strategic reserves (SPR), which have fallen to their lowest level since 1983.
The level of 770/BBL generated a double bottom between December 9 and December 12, 2022, luring buyers at those prices.
In the coming weeks, the market may retest those levels or even hit $69-68.5/bbl (December 21, 2021 lows). In such a case, the RSI may show a bullish divergence since it will not fall as low as it did at the December 9 price lows.
Thus, the short-term scenario may still have another leg down, albeit the proximity to the purchasing window may limit bearish pressure.
A fresh rise over 880/BBL (the 50DMA and the negative trendline from June to November 2022) would open up new positive prospects towards 884/BBL (23.6% Fibonacci) first and 990/BBL (psychological and highs of November 10, 2022) afterwards.
This resulted in a rapid drop to 773/BBL, making it an interesting area to assess the strength of buyers on dips once again. Remember that the US is actively purchasing crude oil at 67-72 dollars per barrel range in order to replenish its strategic reserves (SPR), which have fallen to their lowest level since 1983.
The level of 770/BBL generated a double bottom between December 9 and December 12, 2022, luring buyers at those prices.
In the coming weeks, the market may retest those levels or even hit $69-68.5/bbl (December 21, 2021 lows). In such a case, the RSI may show a bullish divergence since it will not fall as low as it did at the December 9 price lows.
Thus, the short-term scenario may still have another leg down, albeit the proximity to the purchasing window may limit bearish pressure.
A fresh rise over 880/BBL (the 50DMA and the negative trendline from June to November 2022) would open up new positive prospects towards 884/BBL (23.6% Fibonacci) first and 990/BBL (psychological and highs of November 10, 2022) afterwards.
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.