We published neutral sentiments on 22 Aug in our analysis but emphasized on bulls taking control of the oil market soon due to some major indicators, price action and support zone present at 62.046. We anticipated that 61.8% fibb retracement level and exponential moving average 200 in daily would act as a strong reversal zone because of high liquidity and supply demand zone at 62.046 price action. The neutral sentiments were posted because of strong bearish momentum in the oil market back then due to fall in demand for oil - affecting the supply department and depicting a further dovish stance towards 50%fibb retracement level i.e 56.38. Friday’s bump up in WTI prices can be mainly attributed to a potential threat from the powerful hurricane forecast in the Gulf of Mexico, which ignited supply disruption concerns, as energy firms began winding up their production, with the hurricane expected to hit on the weekend.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to fundamentals, the upbeat tone in the black gold are the geopolitical tensions simmering over Afghanistan. Tensions escalated in Afghanistan after ISIS exploded Kabul airport on Thursday and caused causalities in the US troops among other civilians. Technically, WTI has been ranging around the critical 100-Daily Moving Average at 68.06, with fresh support lent by the 21-DMA at 67.61.

A daily closing above the 100-DMA could fuel a fresh upswing towards the horizontal 50-DMA at 70.40.

The 14-day Relative Strength Index (RSI) holds firmer above the midline, suggesting that there is room for more upside. On daily chart WTI is trading just below Senkou Span B of the ichimoku cloud and also struggling with exponential moving average 50, the upbeat according to the aforementioned might limit the bullish tone but the fundamentals might have some hawkish cards in hands to reveal in upcoming days.

WTI

Aug 28 2021

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