Russian President Vladimir Putin yesterday recognized breakaway Ukrainian republics Donetsk and Luhansk as an independent. The US and Europe are set to announce sanctions shortly against the two separatist-run regions in Ukraine and will also target Russian interest in their regions. Russia is the main EU supplier of crude oil, natural gas, and solid fossil fuels. Almost two-thirds of the extra-EU's crude oil imports came from Russia.
We are following this fundamental political and geopolitical situation WTI has drawn an interesting technical picture weekly. It touches and tests the upper trendline drawn from the end of 2020. Deep corrections followed previous tests on this line to the strong support price levels around $60 per barrel. Also, looking at our oscillator indicators, we clearly distinguish formed divergence marked in red on MACD and RSI. In terms of the downside, a break of the aforementioned upside line could spook the buyers from the arena for a while. The commodity may drift to the $85.00 zone and test the high from November 2021. If that hurdle is not able to stop the fall, WTI oil might slide to the other strong support level around $75 per barrel and high from July 2021 or even more optimistic for the bears to test the solid support $65-$62 area marked in purple on the chart.
A further push north, away from the $95.85 barrier, may attract more buyers into the game. WTI oil could then drift to the $98.64 hurdle, marked by the highest point of August 2014. The move might get halted there temporarily. However, if the buyers are still feeling strong, they may overcome that obstacle and aim for the $100.00 psychological level, or the bulls may push the price to the levels from 2014 around $107.00.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
We are following this fundamental political and geopolitical situation WTI has drawn an interesting technical picture weekly. It touches and tests the upper trendline drawn from the end of 2020. Deep corrections followed previous tests on this line to the strong support price levels around $60 per barrel. Also, looking at our oscillator indicators, we clearly distinguish formed divergence marked in red on MACD and RSI. In terms of the downside, a break of the aforementioned upside line could spook the buyers from the arena for a while. The commodity may drift to the $85.00 zone and test the high from November 2021. If that hurdle is not able to stop the fall, WTI oil might slide to the other strong support level around $75 per barrel and high from July 2021 or even more optimistic for the bears to test the solid support $65-$62 area marked in purple on the chart.
A further push north, away from the $95.85 barrier, may attract more buyers into the game. WTI oil could then drift to the $98.64 hurdle, marked by the highest point of August 2014. The move might get halted there temporarily. However, if the buyers are still feeling strong, they may overcome that obstacle and aim for the $100.00 psychological level, or the bulls may push the price to the levels from 2014 around $107.00.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.