WTI stalls on the bid and slumps into the close of the day. (Pivot Orderbook analysis)

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• WTI stalls on the bid and slumps into the close of the day.
• Bears take note of China’s commitment to zero-Covid policy.

The pair currently trades last at 91.15.

The previous day high was 92.09 while the previous day low was 87.2. The daily 38.2% Fib levels comes at 90.22, expected to provide support. Similarly, the daily 61.8% fib level is at 89.07, expected to provide support.

West Texas Intermediate, WTI, was lower at the start of the week with Officials at China’s National Health Commission saying the country will “unswervingly” adhere to current virus controls. At the time of writing, black gold is trading at $91.87 and down 0.67% falling from $93.73 to $90.45bbls. China said it remains committed to its zero-Covid policy that has lowered economic growth and oil demand.

In future, as a consequence, WTI crude for December delivery closed down US$0.82 to US$91.79 per barrel. The officials on the weekend said the country will continue with the mass quarantines of major centres and regions when outbreaks of Covid-19 occur, Reuters reported. The statements ended hopes the country would move away from the policy and focus on growth. This followed rumours that a committee had been set up to consider how to ease restrictions.

”Nevertheless, the near-term fundamentals remain bullish. Futures opened sharply lower on Monday but slowly gained over the course of the day as the focus returned to supply side issues,” analysts at ANZ Bank said.

”OPEC has begun reducing output in line with the agreement to reduce quotas by 2mb/d at its last meeting. The market is also facing the deadline for European imports of Russian oil before sanctions kick in on 5 December. This has left fuel inventories tight, with Brent crude oil futures flirting with USD100/bbl during the session.”

Technical Levels: Supports and Resistances

XTIUSD currently trading at 91.15 at the time of writing. Pair opened at 91.85 and is trading with a change of -0.76 % .

The pair is trading above its 20 Daily moving average @ 86.64, above its 50 Daily moving average @ 85.77 , below its 100 Daily moving average @ 91.26 and below its 200 Daily moving average @ 97.44

The previous day high was 92.09 while the previous day low was 87.2. The daily 38.2% Fib levels comes at 90.22, expected to provide support. Similarly, the daily 61.8% fib level is at 89.07, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 88.67, 85.49, 83.79
• Pivot resistance is noted at 93.56, 95.27, 98.44

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