West Texas Intermediate (WTI), futures on NYMEX, have rebounded after concluding its corrective move to near $71.00 in the London session. The oil price is expected to reclaim the intraday high of $71.60 as discussions about further extension in oil production cuts have deepened.
Saudi Arabia's Ministry for Energy announced it would be extending its production cut for crude for an extra month, as reported by Newswires.
Meanwhile, better-than-expected Caixin Manufacturing PMI data has supported the oil price. The economic data landed at 50.5 higher than the expectations of 50.2 but remained lower than the prior release of 50.9. It is worth noting that China is the largest oil importer in the world and decent factory activities have improved the oil demand outlook.
WTI is looking for a breakout of the Rising Channel chart pattern on an hourly scale in which each pullback is considered as buying opportunity for the market participants. The rally in the oil price will be further strengthened after a pattern breakout.
The 50-period Exponential Moving Average (EMA) is consistently providing support to the oil bulls.
The Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the upside momentum has been activated.
Should the asset break above the intraday high at $71.83, oil bulls would drive the asset towards June 08 high at $73.23 followed by the crucial resistance around $75.00.
On the flip side, a downside move below May 31 low at $67.12 will drag the asset toward the $65.00 support followed by the ultimate support around $64.31.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.