Oil Market: WTI Barrel Faces the $78 Barrier
Over the past two sessions, the price of crude oil has dropped more than 2%. This decline coincides with the Israeli Prime Minister reaching a ceasefire agreement in Gaza. The temporary peace deal has been perceived as favorable for oil production, as it eliminates a geopolitical conflict that could have disrupted operations in the Middle East. As a result, production expectations have risen, contributing to downward pressure on crude prices.
By Julian Pineda, CFA - Market Analyst
- Uptrend
The WTI crude market has maintained a steady upward trend since early December 2024. However, the most recent bullish peak showed significant momentum, which could signal the emergence of bearish corrections in the price. - MACD Indicator
The MACD and signal lines remain bullish but have begun to exhibit a negative slope. Additionally, the histogram has fallen to a fully neutral position around the 0 line of the indicator. These developments suggest a potential exhaustion of previous bullish momentum, creating opportunities for bearish movements. - RSI Indicator
The RSI line remains close to the overbought territory, hovering near the 70 level. Any future movements that revisit this level could increase the likelihood of short-term bearish corrections.
Key Levels - $78: This is the current resistance level, coinciding with the highs from August 2024. Sustained moves above this level could strengthen the bullish outlook and potentially accelerate the ongoing uptrend.
- $72: A crucial support zone where bearish corrections are likely to see significant activity. Moves near or below this level could jeopardize the formation of the current upward channel.
By Julian Pineda, CFA - Market Analyst
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