Looking at the West Texas Intermediate (WTI) crude oil futures contract and above four (4) hour MT 4 chart, price action is trading around the weekly high price point at $41.56 per barrel during the Asian trade session.
Yesterday, the industry firm American Petroleum Institute (API) released weekly inventory levels that were upbeat.
Today, the United States will publish official weekly crude oil inventory levels as well as weekly natural gas inventory numbers. The world’s largest economy is also publishing labor data from the Department of Labor. The Department of Labor is releasing both weekly first time unemployment claims as well as weekly continuing claims data.
The coronavirus (Covid-19) virus is still causing major problems around the United States. New cases are suppressing demand for products. In turn this is keeping businesses from not only hiring but still cutting back on existing jobs.
The United Kingdom will release their monthly CB leading index. The Bank of England (BOE), their central bank, will publish their credit conditions survey. There are no economic data releases on the European Union Calendar. As far as Canada is concerned, the private firm ADP, will publish their monthly unemployment change.
Daily WTI Crude Oil Technical Analysis
Looking at the above WTI crude oil price action chart, the relative strength index (RSI) is starting to move into overbought territory plus the crude contract is trading close to key upside barrier that could bring a counter trend play into the picture. In other words a possible correction lower. With that said, the first downside barrier lines up at $41 per barrel.
The ascending trend line from 2 October then comes into focus. This layer of technical support is in play at $40.20 per barrel. The next downside barrier then lines up at the round $40 per barrel level with both the one hundred and two hundred (100, 200) simple hourly moving averages coming into play. These downside barrier are at 39.90 and $39.80 per barrel.
The first upside barrier lines up at $41.68 per barrel with the early September high price at $42.10 per barrel then popping on the radar. The next upside barrier is at the 27 August low price point at $42.50 per barrel with $43 per barrel then coming into play.