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  • The U.S. crude benchmark logged a 5.5% weekly loss.
  • The price of WTI is correcting from a bullish pin bar on the daily chart following a series of down sessions, with a target of the 21-DMA.
  • On the flip side, a break below the 50 handle opens the Nov 2018 lows at $49.39.

The price of a barrel of oil was higher on Friday, correcting in an improved sentiment in the markets and rebounding from a technically bullish candlestick pattern on the daily chart. West Texas Intermediate crude spot prices travelled from a low of $52.02 to a high of $53.33 on the day while WTI for November delivery added 36 cents, or 0.7%, to settle at $52.81 a barrel.

The U.S. crude benchmark logged a 5.5% weekly loss on the back of investors bailing out of risky asset classes due to heightened concerns over the global economic growth story. A series of poor data from the US in the week, coupled with uncertainties over global trade relations has tested the bull’s commitments to oil prices and subsequently sank them close to the lowest levels for the year.

“CTAs have increased their short positions across the energy complex as prices send firming downside trend signals which further fuel the bearish sentiment,” analysts at TD Securities argued.    

WTI levels  

The price of WTI is correcting from a bullish pin bar on the daily chart following a series of down sessions where the black gold lost close to 13% of its value. The price was close to a full retracement to the year’s lows around 50.50 at its lowest level of 50.97. WTI dropped below the 200, 50 and 21-daily moving averages as well as a break of the 78.6% Fibonacci level (a reenactment target of the August rally) within its decline.

The aformetioned moving averages  are now the upside targets for bulls to aim for, starting with the 21-DMA located around 55.40 while the 200-DMA resides around 56.80 – a key resistance target. On the flip side, a break below the 50 handle opens the Nov 2018 lows at 49.39 guarding risk to the 18th Dec lows at 45.77 ahead of the dec double bottom lows below 42.50.