WTI Price Analysis: Longs are a creeping daily bull trend, $77.70 is key
02.03.2023, 00:39

WTI Price Analysis: Longs are a creeping daily bull trend, $77.70 is key

  • WTI bulls are in control but a sea of change could be occurring. 
  • A move into longs could be the game play for the remainder of the week. 

WTI bulls are in the market amid signs of stronger demand in Asia and Europe. Fundamentally, US commercial crude oil inventories gained less than expected last week, rising only 1,166kbbl. However, US exports of crude hit a record high of 5,629kbbl last week (+22.4% w/w). However, technically, we are running into potentially overbought territory as the following will illustrate:

WTI H1 chart

Looking at the weekly template, we can see that we are entering the third day of being up high in the bull trend and a fresh his could constitute for a sell-high opportunity for the sessions ahead. The bulls will need to drive through the resistance, trapping longs into the market only to get reversed into by a falling market which is where the opportunity could lie for the bears. $77.70 is key as potential resistance whereby a pull might occur should bulls not manage to significantly break the level. 

WTI daily chart

On the downside, a break of $75.76 opens the risk of a move to test $73.90 and below there is space for a significant bear trend top test $70.00. 

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