Oil installations around Turkey and Syria had reported no or minor damages, which capped WTI’s drop. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Oil installations around Turkey and Syria had reported no or minor damages, which capped WTI’s drop.
• Fed hawkish commentary capped WTI’s rally toward $80.00.
• WTI Price Analysis: To remain downward biased, eyeing $73.00.

The pair currently trades last at 77.8.

The previous day high was 78.73 while the previous day low was 77.27. The daily 38.2% Fib levels comes at 78.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 77.83, expected to provide resistance.

WTI creeps lower after testing weekly highs around $78.80 and drops toward the $77.70 area on Thursday amid further hawkish Fed speaking pushing back against Fed Chair Powell’s comments on Tuesday. In addition, speculation of damages to oil infrastructure following an earthquake in Turkey and Syria faded, which remained intact. At the time of writing, WTI exchanges hands at $77.63 per barrel.

Worries about an earthquake that hit Turkey and Syria at the beginning of the week, which has killed more than 19,000 people, was a tailwind for US crude oil prices amidst growing concerns about damaging pipelines and oil infrastructure. Even though spurred a shut off for some days, sources cited by Reuters said “We won’t be losing that supply for as long as we thought.”

An additional factor that undermined oil prices was a stunning jobs report in the United States (US), keeping investors unease amid speculation that the US Federal Reserve would continue to tighten monetary conditions aggressively to an already slowing economy.

Meanwhile, the prospects of solid demand from China, amidst its relaxation of Covid-19 measures, backed WTI prices, as reports showed that Chinese oil consumption would increase crude output by 1 million barrels a day.

That said, WTI’s snapped three days of consecutive gains, peaking around the 50-day EMA at $78.69, exacerbating a fall to the 20-day EMA at $77.71.

Technically speaking, WTI prices appear to have peaked at around the 50-day EMA during the current week. Even though oil is printing a hanging man, a bearish signal, it’s also in the process of forming a bearish engulfing candle pattern, which would trigger a stronger downward reaction that could lower prices.

Therefore, WTI’s first support would be $77.00 PB. A breach of the latter and oil prices will aim toward the February 7 daily low of $74.40, ahead of the weekly low of $72.30.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 77.8 at the time of writing. Pair opened at 78.62 and is trading with a change of -1.04 % .

The pair is trading below its 20 Daily moving average @ 78.94, above its 50 Daily moving average @ 77.54 , below its 100 Daily moving average @ 80.9 and below its 200 Daily moving average @ 90.36

The previous day high was 78.73 while the previous day low was 77.27. The daily 38.2% Fib levels comes at 78.17, expected to provide resistance. Similarly, the daily 61.8% fib level is at 77.83, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 77.68, 76.74, 76.21
• Pivot resistance is noted at 79.15, 79.67, 80.61

[/s2If]
Join Our Telegram Group