WTI PRICE ANALYSIS: WTI TO CLOSE A 2% WINNING WEEK, BULLISH MOMENTUM WANES
WTI rose more than 0.70% on Friday, near $88.00, but indicators on the daily chart started to flash exhaustion signals.
Tighter supply acts as a tailwind for Oil prices.
Global weakening demand may cap gains.
On Friday, the West Texas Intermediate (WTI) advanced near $88.00 and settled below $87.00, still poised for a 2% weekly gain. That said, the daily chart continues to show overbought conditions, suggesting that a downward technical correction may be on the horizon.
On the upside, Saudi Arabia and Russia will extend voluntary supply cuts for the rest of the year and boosted Oil prices during the week. Moreover, the demand from the world's biggest consumer, the US, remains resilient, as shown in the last set of data, which could also favour the price.
Additionally, China and the Euro area report soft economic data and lower demand will limit WTI’s upside. In addition, a stronger USD, whose DXY rose to multi-month highs this week on the back of hawkish bets on the Federal Reserve (Fed), will also present challenges to the black gold’s upside in the next sessions. Lastly, Rising oil output from Iran and Venezuela may add selling pressure
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.