WTI stays depressed after posting the heaviest daily losses in over a week. EIA inventories depleted more than expected, US dollar weakened. Covid woes, reflation fears and Saudi-UAE deal weigh on energy prices. Risk catalysts, DXY moves become the key to fresh impulse. CME Group’s advanced readings for crude oil futures markets noted open interest reversed two consecutive daily builds and went down by around 37.2K contracts, On the other hand, volume increased for the third session in a row, this time by nearly 218K contracts. Wednesday’s negative price action in the WTI was amidst shrinking open interest, leaving the prospects for further downside somewhat curtailed for the time being. That said, crude oil is seen facing the immediate support around monthly lows near the $71.00 mark per barrel. $71.0 is the market price where our monthly pivot is located and is providing a strong support as said along with EMA200 bearing a shoulder to our support zone. 

BULLISH AND BEARISH POSSIBILITIES/ CONDITIONS :

RSI is floating around 34.0 while MACD is showing signs of bearish momentum which ofcourse is a temporary shift due to rise of bulk shipping stocks, new working from home models to cuts in businesses and leisure air travel and  OPEC+ may struggle to balance the market even with cuts. The IEA says that a vaccine is not likely to rescue oil until after the first half of 2021 -  such fundamentals have pulled oil from its early highs. Commodity channel index is in the oversold zone and the current major price action $71.0 will mark a thrust for bullish momentum. Our monthly pivot and EMA200 will play the role of supporting bulls with targetted destination under intraday charts at 73.70 - 74.00. Major fibb retracement levels have been breached in aspect to the highs and lows we have marked on the chart and is also suggesting that 38.20% will act as a reversal pushing the pair towards 50% and 61.8% fibb.

WTI Intraday Bullish

Jul 15 2021