on 21st Sept, we published our analysis on West Texas Oil when the prices were standing at 71.06, anticipating that the crude oil commodity would be moving higher towards further gains after the bearish momentum failed to provide a break out below 67.45. WTI prices are in no mood to slow down its previous week's momentum on the first trading day in the initial European trading hours. The supply-chain bottlenecks underpin the demand for crude oil. At the time of writing, WTI is trading at 75.268, up 1.50% for the day. On the daily chart, WTI has been in the continuous uptrend after testing the low of $61.79 on August 20. The prices are now facing some pressure near the multiple top formations around $75.00, which makes it a crucial level to trade.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

hurricanes and typhoons have already damaged Gulf output and hence some among the key oil producers are planning to shift their production houses to either Canada or Iraq. The same joins tensions between the West and the Middle East to flag the geopolitical fears and test the supplies.

Furthermore, the Organization of the Petroleum Exporting Countries (OPEC) noted in its monthly report that it forecasts the world oil demand to exceed pre-pandemic levels and average 100.8 million barrels per day (bpd), as reported by Reuters on September 13.

If WTI sustains above the intraday high it would retest the all-time high of $76.40.

The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone. Any uptick in the MACD could fuel the upside rally toward the $80.00 mark in the coming few sessions.

Alternatively, if prices move lower, it would look out for  $73.09 as the first downside target and then march toward the low made on Thursday at $71.54. 

WTI

Sep 27 2021