WTI Oil peaks at $93.60 and retreats to $90.50 area. (Pivot Orderbook analysis)

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• WTI Oil peaks at $93.60 and retreats to $90.50 area.
• Oil prices decline on profit-taking, economic concerns.
• The near-term positive trend remains intact while above $90.50 .

The pair currently trades last at 89.81.

The previous day high was 92.36 while the previous day low was 87.38. The daily 38.2% Fib levels comes at 90.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 89.28, expected to provide support.

Front-month WTI prices have retraced half of the last Friday’s jump on Monday, returning to levels below $91.00. The US oil benchmark has broken a 5-day rally, deprecianting from 5-week highs at $93.60 to the mid range of $90.00.

Crude prices have retreated beyond 2% on the day after the September Chinese Caixin Services PMI, released last week, showed a decline to 49,3, from 55 in August, casting shadows about the prospects of global demand for crude.

Furthermore, the sharp oil rally seen last week, which pushed prices 17% higher ,could have triggered some profit-taking movements that would have added negative pressure on prices.

Monday’s reversal has offset last week’s bullish momentum triggered by the production cuts announced by the OPEC+. The club of the world’s largest oil suppliers decided to slash oil production by 2 million barrels per day, the largest production cut since the outbreak of the COVID-19 pandemic, which sent crude prices skyrocketing.

From a technical perspective, WTI process might find suppot at the 50-hour SMA, now at $90.50, which has contained previous reversals over the last week, and would keep the near-8.2% term bullish trend intact.

Below $90.50, next potential targets would be $90.00 psychological level and mid-September highs around 86.50.

On the upside, above $93.00 (intra-day high) WTI prices might be aiming for $94.45 (38.2% retracement of the June – October decline) and then $97.25 (August 29 high).

Technical Levels: Supports and Resistances

XTIUSD currently trading at 89.81 at the time of writing. Pair opened at 92.26 and is trading with a change of -2.66 % .

The pair is trading above its 20 Daily moving average @ 84.02, above its 50 Daily moving average @ 87.41 , below its 100 Daily moving average @ 96.94 and below its 200 Daily moving average @ 96.94

The previous day high was 92.36 while the previous day low was 87.38. The daily 38.2% Fib levels comes at 90.46, expected to provide resistance. Similarly, the daily 61.8% fib level is at 89.28, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 88.97, 85.68, 83.99
• Pivot resistance is noted at 93.96, 95.65, 98.94

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