WTI picks up bids to pare the biggest daily loss in a week. (Pivot Orderbook analysis)
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- WTI picks up bids to pare the biggest daily loss in a week.
- Fears of cut in output by the key Oil refiners, cautious optimism in market underpin recovery moves.
- Surprise draw in API inventories adds strength to recovery moves.
- EIA Crude Oil Stocks Change, US Durable Goods Orders eyed for clear directions.
The pair currently trades last at 77.47.
The previous day high was 79.02 while the previous day low was 76.47. The daily 38.2% Fib levels comes at 77.44, expected to provide support. Similarly, the daily 61.8% fib level is at 78.04, expected to provide resistance.
WTI crude oil pares the biggest daily loss in a week around $77.50 heading into Wednesday’s European session as market sentiment improves ahead of the key US data, as well as the weekly official Oil inventory numbers.
Adding strength to the rebound can be the headlines suggesting a likely production cut from the key refiners due to fears of lesser demand. That said, Tuesday’s surprise draw in the Oil inventories, as per the industry source American Petroleum Institute (API), also underpins the WTI crude oil recovery.
It’s worth noting that the API Weekly Crude Oil Stock came in -6.083M for the week ended on April 21 versus -2.675M prior.
On the other hand, Bloomberg flags fears of further decline in the Oil output from the Organization of Petroleum Exporting Countries and its allies, correctively known as OPEC+, by citing deterioration in oil-refining profits over the last few weeks.
It’s worth mentioning that upbeat earnings from Microsoft and Alphabet join US President Joe Biden’s warning to use the veto to avoid the US default also underpin the cautious optimism in the market and trigger a corrective bounce in the black gold prices.
“President Biden on Tuesday threatened to veto legislation being pushed by House Republican leaders that would condition support for raising the debt ceiling on deep spending cuts, calling it “a reckless attempt to extract extreme concessions as a condition for the United States simply paying the bills it has already incurred,” per the Washington Post.
Previously, fresh banking fears, triggered through the First Republic Bank (FRB), joined the US debt ceiling talks and mixed US data to prod the market sentiment and drown the WTI Crude Oil.
Moving on, the WTI crude oil traders should pay attention to the official US stockpile data from the Energy Information Administration (EIA), as well as the US Durable Goods Orders for March, expected to improve to 0.8% versus -1.0% prior, for clear directions. Above all, the market’s risk appetite and the US Dollar moves will be crucial for the Oil traders to watch.
Although the 100-DMA level of around $76.90 restricts short-term WTI crude oil downside, the energy bulls remain cautious unless the quote stays below the early-month swing low surrounding $79.50.
Technical Levels: Supports and Resistances
XTIUSD currently trading at 77.47 at the time of writing. Pair opened at 77.07 and is trading with a change of 0.52% % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 77.47 |
| 1 | Today Daily Change | 0.40 |
| 2 | Today Daily Change % | 0.52% |
| 3 | Today daily open | 77.07 |
The pair is trading below its 20 Daily moving average @ 79.0, above its 50 Daily moving average @ 76.34 , above its 100 Daily moving average @ 76.93 and below its 200 Daily moving average @ 81.96
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 79.00 |
| 1 | Daily SMA50 | 76.34 |
| 2 | Daily SMA100 | 76.93 |
| 3 | Daily SMA200 | 81.96 |
The previous day high was 79.02 while the previous day low was 76.47. The daily 38.2% Fib levels comes at 77.44, expected to provide support. Similarly, the daily 61.8% fib level is at 78.04, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 76.02, 74.97, 73.47
- Pivot resistance is noted at 78.57, 80.07, 81.12
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 79.02 |
| Previous Daily Low | 76.47 |
| Previous Weekly High | 82.61 |
| Previous Weekly Low | 76.69 |
| Previous Monthly High | 80.99 |
| Previous Monthly Low | 64.39 |
| Daily Fibonacci 38.2% | 77.44 |
| Daily Fibonacci 61.8% | 78.04 |
| Daily Pivot Point S1 | 76.02 |
| Daily Pivot Point S2 | 74.97 |
| Daily Pivot Point S3 | 73.47 |
| Daily Pivot Point R1 | 78.57 |
| Daily Pivot Point R2 | 80.07 |
| Daily Pivot Point R3 | 81.12 |
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