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Crude Oil Technical Analysis – October-9-2023

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FxNews – The prices of WTI (West Texas Intermediate) oil and Brent crude are currently experiencing an upward trend. This surge in prices is largely driven by concerns about a potential reduction in oil supply from the Middle East, a region known for its significant oil reserves.

Looking at the WTI price on a weekly timeframe, we can see that the longer-term flow has seemingly found a stable base at the support level of $82. This comes after last week’s rejection at the resistance level of $95. In simpler terms, the price of WTI oil tried to go beyond $93.31 last week but couldn’t sustain that level and fell back. Now, it seems to have stabilized at $82, which means it’s not going below this price for now.

Crude Oil Technical Analysis - October-9-2023

Crude Oil Analysis – Daily Chart

In addition to this, the Relative Strength Index (RSI), a technical momentum indicator that compares the magnitude of recent gains to recent losses, is showing positive signs. The RSI is currently above its 50 centerline on the weekly scale. This indicates that the average gains are exceeding the average losses, which is a positive sign for those looking to buy.

In essence, these trends suggest that there’s a strong buying interest in the market right now for WTI oil and Brent crude. However, as with any investment, it’s important to keep an eye on market trends and do thorough research before making any decisions.

Crude Oil Analysis – 4H Chart

We’ve observed a significant development. The black gold has broken through the declining channel in the 4-hour chart and found support at the 85.38 pivot. This occurred after the day started with a substantial gap.

Initially, it was anticipated that oil would clear some of this gap, but so far, the black gold hasn’t been able to close below the pivot line. The Relative Strength Index (RSI), a momentum indicator that measures the speed and change of price movements, has flipped above the 50 line. This suggests that bullish market players might pave the way to the 89.2 resistance level.

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Crude Oil Analysis – 4H Chart

However, it’s important to note that for the bearish bias to remain in play, the bears must secure a close below the 85.38 pivot point. If crude oil reverts back to the declining channel, it’s likely that the downward momentum initiated last week will continue, potentially targeting previous lower lows around 81 – 81 dollars.

Conclusion

In simpler terms, if you’re looking at investing in crude oil, keep an eye on these pivot points and resistance levels as they can provide valuable insights into future price movements. Remember, investing always comes with risks and it’s important to do thorough research before making any decisions.

  • 9 October 2023
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