Oil Analysis: Middle East Tension Bolster Prices

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Crude Oil Analysis – WTI (West Texas Intermediate) oil and Brent crude prices are experiencing an upward trend. This price surge is primarily 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 weekly, 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. It seems to have stabilized at $82, so it’s not going below this price for now.

Crude Oil Technical Analysis

Crude Oil Analysis

In addition, 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 exceed the average losses, a positive sign for those looking to buy.

These trends suggest a strong buying interest in the current WTI oil and Brent crude market. However, as with any investment, it’s essential to monitor market trends and conduct thorough research before making any decisions.

Crude Oil Analysis: 4H Chart Price Action

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 bullish market players might pave the way to the 89.2 resistance level.

Crude Oil Technical Analysis

Crude Oil Analysis

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 to the declining channel, the downward momentum initiated last week will likely 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. Investing always comes with risks, and it’s important to do thorough research before making any decisions.

  • 9 October 2023