Oil Price Analysis: WTI once again breaks $40 per barrel after trading lower in early EU trade

  • WTI trades 1.44% higher on Friday after some selling yesterday and overnight.
  • The price has broken back into a broken previous trendline.

WTI 4-hour chart

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday’s session, the price has taken the USD 40 per barrel handle. There are still some key resistance zones the bulls will need to break but the price action is very positive. 

If this is to be the lower high, the bears will need to try and break USD 38.73 per barrel to the downside. But until then the upside targets remain more likely to be tested. The previous wave high is USD 41.13 per barrel. Beyond that, the high on the chart is USD 41.64 per barrel. 

The indicators are looking mixed at the moment. The MACD histogram is red but the signal lines are about to cross above the zero level. The Relative Strength Index is just above the 50 line and there is space to move to the upside. 

The Baker Hughes rig count data was at 185 last time out the levels had been in a serious decline but the decline had been flattening out in recent weeks. This time out the number of working rigs is down by 4 rigs to 181. I suppose any decline at the moment is positive as the price of oil stabilised but the rig count continues to decline.

WTI price action

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