Current trend

During the Asian session, prices for WTI Crude Oil are growing after yesterday’s correction and testing the level of 70.00, while traders are analyzing the results of the two-day meeting of the US Fed on monetary policy.

The Federal Open Market Committee (FOMC) adjusted the interest rate to 4.75–5.00% for the first time in four years, which emphasizes the regulator’s commitment to protecting the labor market and preventing a recession and may improve the economic situation in the country, which is the largest consumer of crude oil. At the same time, department officials adjusted their forecasts for the dynamics of gross domestic product (GDP) from 2.1% to 2.0% and inflation expectations from 2.6% to 2.3%, which is also a signal to maintain the “dovish” course until the end of the year.

The quotes are supported by data on the dynamics of reserves from the Energy Information Administration of the US Department of Energy (EIA). For the week of September 13, the indicator changed from 0.833M barrels to –1.63M barrels relative to estimates of –0.1M barrels. The American Petroleum Institute (API) report reflected an increase in the value for the week of September 13 from –2.79M barrels to 1.96M barrels against –0.1M barrels.

Support and resistance

On the daily chart, Bollinger bands are steadily declining. The price range is narrowing, reflecting the ambiguous trading dynamics in the short term. The MACD indicator is growing, maintaining a strong buy signal (the histogram is above the signal line). Stochastic tries to reverse at the highs ​​in a downward plane, signaling that the instrument may become overbought in the ultra-short term.

Resistance levels: 70.00, 71.00, 71.75, 72.35.

Support levels: 69.12, 68.15, 67.00, 66.00.

Trading tips

Long positions can be opened at the current price with a target of 71.75. Stop-loss — 69.12. Implementation time: 1-2 days.

Short positions may be opened after breakdown of the 69.12 level, with the target at 67.00. Stop loss is 70.00.