FXStreet (Córdoba) – West Texas Intermediate crude oil extended its latest rally up to $46.74 a barrel on Thursday, but closed the day a few cents lower, in quite a choppy trading session.
The commodity surged sharply on Wednesday, with no clear catalyst behind the move and despite US stockpiles remain at record highs. However, WTI pared its gains after reaching its daily 20 SMA, as investors lost their previous enthusiasm following the release of soft US data.
WTI technical perspective
“The movement so far seems corrective as the daily chart shows that the price also stalled a few cents below the 50% retracement of its latest decline, before extending its slide below the 38.2% retracement of the same rally around 46.10, now the immediate resistance. In the same chart, the technical indicators are now turning slightly lower in negative territory, following a bounce from oversold levels, all of which suggests an interim top may have been reached”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators have turned slightly lower near overbought levels, albeit the price remains well above a bullish 20 SMA, supporting at least a short term decline towards the 45.00 level”.
As for technical levels, Bednarik locates next supports at 45.10, 44.40 and 43.70, while she sees resistance levels at 46.10, 46.90 and 47.70.
(Market News Provided by FXstreet)