- WTI is trading 0.79% higher on Monday as risk sentiment remains positive.
- There is a support level close by at USD 40.50 that should be watched.
WTI 1-hour chart
Like many other of the commodities markets, WTI is struggling with the balance of short term supply issues and lack demand due to the COVID-19 crisis. Companies like Chesapeake Energy have gone bankrupt in the US due to the recent oil price crash and this could have affected supply.
For the most part, WTI has been trading higher on Friday. More recently the price has moved lower in the US session. The price is now heading towards a support area at USD 40.50 per barrel. One of the key features on the chart is the rising wedge pattern marked in black. If there is to be a break in either direction it could give us an indication of the future trajectory of the commodity.
The indicators have started to turn south too. The Relative Strength Index has moved toward the 50 mid-point. The MACD histogram has turned red but the signal lines are still above the zero-line. This could mean that the price is still in an uptrend and until there is a lower low lower high price wave this would still be the case.