WTI COMPLETES A FAILURE SWING TOP WITH DIVERGENCE
The price of a WTI barrel had risen more than 50% so far this year but slipped on Monday as OPEC+ agreed to ramp up production by 400,000 bpd while fears that a surge in the Delta variant of the coronavirus threatens oil demand prospects. Oil prices had rebounded 1.4% on Tuesday afternoon in the runup to the data release, after sinking nearly 7% on Monday. Looking technically at WTI weekly chart, we can see that the oil price touch the previous strong resistance level formed in September 2018 and the week ending at 09.07.2021, it close with a bearish spinning top candlestick. The oil price clear formed a substantial divergence matched with our oscillator indicators MACD and RSI. Last week the price dropped down to the psychological level of $70 per barrel, and during this week fill the gap to the previous strong resistance level at around $67. From this turning point, it would be interesting how the traders and investors will react. If the price bounces back up, it is possible to test the previous high at $77. But if the price breaks down below this week, the price may test local support at $57 or strong support zone at $50-$51. If the production ramp-up while fears surge in the Delta variant of the coronavirus threatens oil demand prospects, we may see lower price levels to the support zone at $42 per barrel.
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Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.