Current trend

The price of WTI Crude Oil is adjusted in a sideways trend at 81.09.

Last week, White House officials said they did not rule out releasing existing stocks to stabilize the market situation and curb the rapid uptrend in quotes. According to recent estimates, the US strategic reserve now contains 370.912 million barrels of oil, which is 0.368 million barrels more than at the beginning of the month. It is replenished by about 2.8–3.0 million barrels per month, and current volumes are at the level of 1983.

A report by the Energy Information Administration of the U.S. Department of Energy (EIA) recorded that the volume of crude oil held by American companies decreased by 2.547 million barrels, which almost coincided with the forecast of ˗2,800 million barrels. Even though two days earlier the American Petroleum Institute (API) reported an increase in oil reserves in warehouses by 2.264 million barrels, this did not have a serious impact on quotes.

According to the Chicago Mercantile Exchange (CME), the volume of trading in futures for WTI Crude Oil began to increase again and over the past 3 days amounted to almost 1.0 million contracts, while at the end of last week the average was 916.0 thousand contracts. The increase in trading volume signals that investors are afraid of sharp fluctuations in the asset.

Support and resistance

On the D1 chart, the trading instrument moves away from the resistance line of the "expanding formation" pattern with the boundaries of 80.00–73.00 and forms another growth wave.

Technical indicators hold an increasing buy signal: fast EMAs on the Alligator indicator are above the signal line and expand the range of fluctuations, and the AO histogram forms new correction bars, rising in the purchase zone.

Support levels: 80.00, 76.70.

Resistance levels: 81.80, 85.10.

Trading tips

If the growth of the asset continues and the price consolidates above the resistance level of 81.80, one may open long positions with the target of 85.10 and stop-loss of 81.00. Implementation time: 7 days and more.

In the event of a reversal and continued decline of the asset, as well as price consolidation below the support level of 80.00, one can open short positions with the target of 76.70 and stop-loss of 81.50.