U.S. West Texas Intermediate (WTI) Crude oil is still looking weak as we head into Tuesday. Price action appear subdued within a symmetrical triangle on the above four hour MT 4 price action chart.
The WTI contract trading between $59.80 per barrel on the upside and $59.10 on the downside as technical indicators lack direction. Price action is also just above the twenty (20) hour simple moving average.
Today’s economic calendar has a few high impact events. This includes key inflation data out of the United States. The world’s largest economy will publish their core and headline monthly consumer price index (CPI). On the euro area calendar, economic sentiment surveys are in focus.
The European Union and Germany will publish their monthly ZEW economic surveys. Italy will publish their monthly industrial production data. The United Kingdom will release monthly gross domestic product (GDP) data as well as their monthly BRC retail sales monitor.
Daily WTI Crude Oil Technical Analysis
Crude oil traders should note that the MACD histogram is around the mid-line and tending higher into overbought. This signals possible waning upside momentum which could cap immediate upside gains in the near term.
On the downside, if crude oil moves lower, immediate support lines up at $58.75 per barrel with the next layer of technical support lining up at $57.62 per barrel. The next downside barrier lines up at $57.65 per barrel.
Should the West Texas Intermediate (WTI) Crude oil move higher and close above the 20 hour simple moving average, on a daily basis, the bulls could enter the market. The 20 hour simple moving average is at $59.20 per barrel.
The next layer of technical resistance is a horizontal layer lining up at $60.25 per barrel. A sustained close above this level opens the door for last week’s high price in play at $61.50 per barrel.