The barrel of West Texas Intermediate fell to $65.22 on Friday, its lowest since November 2022. It currently trades at around $67.30 a barrel, breaking lower amid financial turmoil weighing on the market mood.

the bullish Doji candlestick on the daily chart formation joins the oversold RSI (14) line to favor the WTI crude oil’s corrective bounce off the lowest levels since December 2021. Adding strength to the corrective bounce could be the US Dollar’s latest retreat, as well as hopes of overcoming the fears of the 2008 financial crisis.

WTI has shown a confident recovery after testing a fresh 15-month low at $65.88 on Thursday. The oil price has formed a Double Bottom chart pattern on an hourly scale, which indicates a bullish reversal as the asset re-tested its prior crucial lows with less selling pressure. A bullish reversal has been pinned as the oil price has crossed the critical resistance of $69.00.

The black gold is aiming to shift its auction above the 20-period Exponential Moving Average (EMA) at $68.50, which will underpin a short-term upside trend.

Meanwhile, the Relative Strength Index (RSI) (14) has delivered a range shift move from the bearish territory of 20.00-40.00 to the neutral region of 40.00-60.00, which cements a bullish reversal.

For further upside, the oil price needs to break Thursday’s high at $69.53, which will drive the asset toward the horizontal resistance plotted around $71.00. A break above the latter will further push the oil price to near February 22 low at $73.85.

On the contrary, a downside move below the 15-month low at $65.88 would drag the asset toward 30 November 2021 low at $64.40 followed by 02 December 2021 low at 62.41.

WTI to regain its strength above the weekly orderblock

Mar 19 2023