- WTI has dropped 0.82% on Friday after the excitement on Thursday.
- The commodity looks set to close the week almost 9% higher.
WTI 1-hour chart
WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. This means the output cuts will remain in place till December. Interestingly the Saudi Arabia’s energy minister went on the offensive, warning traders against heavily betting in the oil market, promising that those who gamble on prices will be hurt “like hell.”. Make of that what you will.
Looking at the price action, since the price broke the triangle at the bottom of the chart there was a price rise to USD 41.44 per barrel. It was at this point the price bounced between two previously used levels at USD 40.50 and USD 41.44 per barrel.
Moving forward, if the red support breaks there could be a move to the black support line near USD 39.50 per barrel but as the recent news has been positive, there could be a bounce at these support levels to the upside.
The indicators had been positive and are in a retracement phase. The Relative Strength Index is making a bullish failure swing pattern. This is when the price waves make a higher low and the indicators waves make a lower low. It is normally a trend continuation pattern and for confirmation look for a break of USD 41.59 per barrel.