Technical analysis update: WTI oil (16th July 2021)

WTI oil continues to experience selling pressure due to the stalemate within OPEC deal . However, anonymous sources hinted that some form of agreement has been struck between Saudi Arabia and UAE. If true, this would be bullish developement for price of oil. Before the selloff started we stated that selling would cease around 70 USD per barrel. Then price found its support at 70.79 USD and reversed back to the upside. Currently price fluctuates between 70 USD and 77 USD. MACD, RSI and Stochastics are all bearish. However, RSI shows first signs of flattening. Despite bearish technicals we remain bullish. We expect OPEC to reach agreement and view this as catalyst for move up. Our medium term price target remains 77.50 USD and our long term price target remains 80 USD per barrel.

Thoughts from 5th July 2021:

Here we warned investors about overbought condition in WTI oil. We also stated that odds of correction are increasingly growing.

More thoughts from 1st June 2021:

Here we predicted move above resistance and reached our price target of 70 USD.

Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Comment:

Breaking below Support 1 suggests that selling pressure remains in place.

Comment:

Yesterday OPEC announced gradual supply boost by 400k per month over next 12 months. We expect WTI oil to move towards 68 USD in the short term.