Technical analysis update: WTI oil (3rd September 2021)
Updated
Our short term price target of 70 USD was reached yesterday. USOIL currently trades around 70.30 USD. We remain bullish on WTI oil. Our medium term price target is 77.50 USD and our long term price target is 80 USD. We would like to set new short term price target for USOIL to 72.50 USD.
Technical analysis
RSI and Stochastic are bullish. MACD has bullish direction and we will observe it closely in the following days. We will look for crossover above 0 points (to the bullish zone). We expect this phenomenon to further bolster bullish case for the WTI oil. Previous short term resistance (at 69.60 USD) now acts as short term support. Medium term resistance is at 74.21 USD. Major resistance sits at 76.95 USD and major support sits at 61.58 USD.
Depiction above is another interesting setup for USOIL when a line is drawn from the peak of 76.95 USD and extended through the peak of 74.21 USD.
Latest news in the oil market
1.OPEC continues to keep its supply boost agreement in place signaling healthy oil market. News media report that OPEC+ is expected to raise its 2022 oil demand growth forecast to 4.2M bbl/day from its previous outlook of 3.28M bbl/day.
2. EIA reports that the U.S. crude oil inventories fell more than expected last week. U.S. crude stockpiles fell by 7.2M barrels to 425.4M barrels. This is despite domestic production continues to climb to a 15-month-high.
3. Yesterday Javad Owji (Iran’s new Oil Minister) met with top official from the China national Petroleum Corporation (CNPC) to discuss cooperation and expansion of bilateral relations.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Technical analysis
RSI and Stochastic are bullish. MACD has bullish direction and we will observe it closely in the following days. We will look for crossover above 0 points (to the bullish zone). We expect this phenomenon to further bolster bullish case for the WTI oil. Previous short term resistance (at 69.60 USD) now acts as short term support. Medium term resistance is at 74.21 USD. Major resistance sits at 76.95 USD and major support sits at 61.58 USD.
Depiction above is another interesting setup for USOIL when a line is drawn from the peak of 76.95 USD and extended through the peak of 74.21 USD.
Latest news in the oil market
1.OPEC continues to keep its supply boost agreement in place signaling healthy oil market. News media report that OPEC+ is expected to raise its 2022 oil demand growth forecast to 4.2M bbl/day from its previous outlook of 3.28M bbl/day.
2. EIA reports that the U.S. crude oil inventories fell more than expected last week. U.S. crude stockpiles fell by 7.2M barrels to 425.4M barrels. This is despite domestic production continues to climb to a 15-month-high.
3. Yesterday Javad Owji (Iran’s new Oil Minister) met with top official from the China national Petroleum Corporation (CNPC) to discuss cooperation and expansion of bilateral relations.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade closed: target reached
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