Despite the pullback seen yesterday, the benchmark U.S. West Texas Intermediate (WTI) crude oil futures contract remains in an uptrend seen on the above hourly MT 4 price chart.
There are global demand worries pressuring the benchmark crude oil contracts including the U.S. WTI oil futures contract. Despite ongoing coronavirus vaccine rollout, there is an alarming spike in new Covid-19) (coronavirus) pandemic cases in China, Europe, the United Kingdom and across the United States that has brought on new restrictions which could sap the demand for the black gold.
Financial market participants are worried over political instability in the United States. The U.S. House of Representatives, is looking to impeach, for an unprecedented second time, President Donald Trump. This is over his role in last week’s coup.
His fiery rhetoric brought about an attempt to bring down the government. His wing extremists, who support him, stormed Capitol Hill causing the deaths of at least four people including a police officer.
The United Kingdom is releasing their monthly BRC sales monitor. The United States will publish their weekly JOLTS jobs openings data. The Eurozone calendar is quiet today as is the Canadian macroeconomic calendar.
Daily U.S. WTI Crude Oil Technical Analysis
Yesterday, the WTI crude oil contract challenged the fifty (50) hour simple moving average as price action fell from a 2020 high price point. This contract is now trading around $52.10 per barrel.
Oil failed to extend its recovery above a short term trend line. This could bring about another challenge of the 50 hour simple moving average which lines up at $51.70. The next layer of technical support lines up at the key round number of $50 per barrel with the 200 hour simple moving average at $49.70 coming into focus next.
On the upside, the one week old rising trend line at $52.55 is near term technical resistance. The next upside barrier lines up at February 2020 high price point at $54.70 per barrel.