Home » Technical Analysis » Crude Licks its Wounds around $76.70 after Selling Off

Crude Licks its Wounds around $76.70 after Selling Off

Crude  oil

The U.S. West Texas Intermediate (WTI) crude oil futures contract is trading around $76.70 to $77.50 per barrel. Overnight, the US contract saw its biggest daily selloff in a week. Price action is challenging the early October low price point.

The world’s largest economy has labor data scheduled for publication on Thursday. The U.S. Labor Department will release their weekly initial and continuing jobless claims. The Philadelphia Federal Reserve will report their monthly manufacturing index.

The crude oil industry firm Baker Hughes will release data, as well. This includes their weekly active rig count and other weekly oil figures including inventory numbers.

Across the Pond in the Eurozone and UK, the economic docket is quiet. The European Union has no top tier economic data scheduled for publication. Neither does the United Kingdom. Brexit is worrying the financial markets as the United Kingdom and France try to reach some kind of agreement over fisheries.

The Northern Ireland border issue also remains an issue. Rising coronavirus pandemic cases in the euro area and UK are also troubling to traders.

The U.S. President has asked the Federal Trade Commission (FTC) to look into sever oil companies for unfair trade practices keeping prices elevated.

Daily U.S. WTI Crude Oil Technical Analysis

Looking at the above daily MT 4 price chart, the U.S. West Texas Intermediate (WTI) crude oil futures contract is also below the 50 day simple moving average. The 14 day MACD histogram is also bearish.

The next downside barrier to watch lined up at the July high price level of $76.40 before challenging the 100 day simple moving average. The fifty percent Fibonacci level lines up near $73.35 per barrel. The 61.8 percent Fibonacci level comes into focus around $70.60.

On the upside, crude oil has immediate resistance at the 50 day simple moving average near $78.10. There is a falling trend line in play since late October near $79.20 with $83 per barrel coming into play next. The next upside barrier lines up at $85 per barrel.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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