WTI bears taking back control as price reverts back below the hourly 21-SMA. OPEC meeting is the key focus, bulls looking for confirmation of output cuts. WTI has started to make tracks to the downside following a bullish opening start to the week where the price gapped close to 2% higher, extending its run to trade to a high of $53.96. President Vladimir Putin, in a press conference late Saturday, said he and Saudi Crown Prince Mohammed Bin Salman agreed to extend output cuts. Additionally, Canada’s oil-rich Alberta province has announced surprise output curbs. Alberta Premier Rachel Notley said she has ordered oil companies in the Canadian province to cut production by nearly 9% next year, further boosting the price of crude on Monday. We also had the news today that Qatar will pull out of OPEC by January 1st putting more focus on the production of its natural-gas. When adding in the risk-on sentiment in the market following the Sino/US trade war ceasefire where risky asset classes can benefit, WTI was well supported heading into the European open. However, the price started to tail off in Western markets as the dollar managed to reclaim territory back towards the 97 handle in the DXY, despite US bond yields on the decline, falling to their lowest levels in the US shift to below the 3.00% handle. WTI remains in the doldrums However, WTI remains in the doldrums of the early October route where they dropped by a third in as little as over two months due to growing concerns over global economic growth and demand. The focus is now shifting towards Thursday-Friday OPEC meeting in Vienna and markets will be paying particular attention to whether output cuts are needed. Analysts at Goldman Sachs estimate that “a cut in OPEC and Russia production of 1.3 [million barrels a day]will be required to reverse the ongoing counter-seasonally large increase in inventories and bring stocks back to their 5-year average level.” WTI levels Technically, WTI bulls have managed to move out of the immediate danger zone and support line between the yearly lows of 49.66 and the psychological 50 handle. The price has pierced the 10-D SMA located at 52.39 and up to R3 located at $53.87. However, the hourly price action has WTI submerged back below the 21-hr SMA as the price moves towards a closure of the bullish opening gap with only the 52 psychological level in the bear’s path with the confluence of the 50-hr SMA as support. Daily & weekly RSI has managed to climb back above 30, but monthly RSI and DMI remain with a negative bias. Bulls need to get above the 23.6% Fibo retracement of the recent rout from just below the 77 handle at 56 with the confluence of the 21-D SMA at 56 and hold above R3. Bears are otherwise in control and look to the 123.6% Fibo extension target is located in the 43.90s while the June 2009 lows are nearby at 41.83. The 161.18% Fibo extension target is situated at 33.77. The Jan 2016 low is located at 26.03. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD Technical Analysis: Euro losses strength, price action limited around 1.1350 FX Street 4 years WTI bears taking back control as price reverts back below the hourly 21-SMA. OPEC meeting is the key focus, bulls looking for confirmation of output cuts. WTI has started to make tracks to the downside following a bullish opening start to the week where the price gapped close to 2% higher, extending its run to trade to a high of $53.96. President Vladimir Putin, in a press conference late Saturday, said he and Saudi Crown Prince Mohammed Bin Salman agreed to extend output cuts. Additionally, Canada's oil-rich Alberta province has announced surprise output curbs. Alberta Premier Rachel Notley said… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.