On Sunday, the OPEC+ delivered some more bullish
news for the oil
market as it looks like they want to keep prices above $70 level. In fact,
Saudi Arabia announced that it will make additional voluntary production cut of
1 million bpd starting in July for one month, although it can be extended based
on the market outlook. All the other members will extend their production cuts
through 2024.
The OPEC+ supply cuts are
undoubtedly bullish in the short-term but we have already seen that in a
contractionary business cycle the demand side weighs a lot on the oil market as
the latest surprising cut was completely faded and oil prices tumbled to $64
from the $83 high.
WTI Crude Oil Technical
Analysis – Daily Timeframe
WTI Crude Oil Daily
On the daily chart, we can see that WTI Crude Oil
opened with a positive gap at $75 and filled it soon after during the APAC
trading session. Oil has faced lots of selling pressure around this $72-$74 resistance zone and
we will see in the next days if the OPEC+ decision is enough to boost Oil
prices or if we get another selloff like the last time. The target on the
upside would be the $83 high, while the target on the downside would be the $64
low.
WTI Crude Oil Technical
Analysis – 4 hour Timeframe
WTI Crude Oil 4 hour
On the 4 hour chart, we can see that WTI Crude Oil
has pulled back to the nearest support level at $72. Here the buyers may lean
on the blue 8 moving average to then
push to the upside and extend the rally past the $75 high. The sellers, on the
other hand, are likely to pile in here defending this resistance zone and
targeting the $64 low.
WTI Crude Oil Technical
Analysis – 1 hour Timeframe
WTI Crude Oil 1 hour
On the 1 hour chart, we can see that the
price has filled the gap and pulled back to its original Friday’s closing
price. Here we can find the red 21 moving average and the 38.2% Fibonacci
retracement level. We should find buyers leaning on
this support zone targeting new highs. Conversely, the sellers will look to
extend the fall in case the price breaks below the 38.2% Fibonacci level and
possibly invalidate the entire bullish setup if the price falls below the $71
level.
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- Source: https://www.forexlive.com/technical-analysis/wti-crude-oil-technical-analysis-20230605/