Looking at the popular U.S. West Texas Intermediate (WTI) crude oil futures contract, prices have caught a bid and started moving higher. Price action is trading back above $70 per barrel after trading sideways around the 32 month high price point.
There are a couple of macroeconomic events on Wednesday’s economic calendar that should impact the WTI crude oil futures contract and price action. First, the United States will publish weekly crude oil inventory data.
The Bank of Canada will announce monetary policy and interest rates today. Canada has a lot of exposure to crude oil as they are a major exporter of the black gold.
Across the Pond, in the euro area, Germany will publish monthly trade balance data. The United Kingdom has no key economic data scheduled to be released today.
Looking at the above weekly MT 4 price action chart, the West Texas Intermediate (WTI) crude oil futures contract is looking a bit sluggish. The momentum indicator, or MACD histogram, is in overbought territory. This could cap further gains for this crude oil contract.
Daily WTI Crude Oil Technical Analysis
In order for more gains to occur, a clear and decisive break above congestion zone in play at $66.60 to $66.70 per barrel is needed. This could bring the bulls fully into this oil market. If that happens, the next upside barrier is in play at $72 per barrel.
The next upside barriers to monitor line up at the May and June of 2018 high points. These upside layers of technical resistance are at $72.85 and $73.90 per barrel. At this point $74 per barrel then comes into play with the 2018 year price point at $76.80 then coming into focus.
On the downside, immediate technical support lines up at $66.60 per barrel. A daily close below this level opens the door for a 14 month old rising trend line. This layer of technical support lines up at $61.80 per barrel.