WTI rallies on upbeat sentiment, buyers reclaim $104.00
- WTI is advancing during the week and is erasing last week’s losses, gaining almost 7%.
- A risk-on impulse augmented the appetite for the black gold, which remained below $100 for three days.
- WTI Price Analysis: It is upward biased, and if buyers reclaim $104.00, that would open the door for further gains.
Western Texas Intermediate, also known as WTI, rallied sharply on Tuesday, almost 2% amidst an upbeat market mood, despite Monday’s Apple news that will halt hiring, viewed by investors as recession fears increasing amongst US companies. However, investors shrugged off those worries and are lifting US crude oil prices. At the time of writing, WTI is trading at $104.08 BPD.
Investors’ sentiment remains positive as US equities rise. A softer US Dollar and supply fears due to the Russian oil embargo bolstered the black gold. Oil markets have been trading volatile in recent weeks, as fears of a worldwide recession would diminish demand, but also weighed by a strong US Dollar.
In the meantime, US President Joe Biden’s visit to Saudi Arabia did not result as expected. Saudi ministers insisted that policy decisions would be taken according to supply and demand and within the OPEC+ members’ agreements.
In the meantime, a power outage at a pump station in South Dakota disrupted oil delivery from Canada to the US -via the Keystone pipeline-and propelled traders to bid up WTI price.
WTI Price Analysis: Technical outlook
From a technical perspective, WTI is upward biased, as shown by the daily chart. The US crude oil is trading within a $10.00 range, supported by the 200-day EMA at $94.41 on the downside, while on the upside, the 20-day EMA at $103.68, initially was resistance. However, a leg up towards the daily high at around $104.44 shifted the 20-day EMA from a resistance level to support.
Therefore, the WTI path of least resistance is headed upwards. That said, the WTI's first resistance would be the July 8 high at $105.21. Break above will expose the 100-day EMA at $107.62, followed by the 50-day EMA at $110.12.
