Oil Price Analysis: WTI moves back to flat and once again trades above $40 per barrel
- WTI trades flat on Friday but down 1.81% this week.
- It has not been the most exciting day for price action with the price stabilising at USD 40 per barrel.
WTI 1-hour chart
It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December. This decision was due to the continuing issues surrounding the COVID-19 pandemic. Just recently the latest US rig count data was released but it has stalled within the recent median range and will not have a major impact on the current price.
Looking at the price, the market has now consolidated after the move from a low of USD 36.43 per barrel. Now the price seems to be stabilising at USD 40 per barrel. There is a floor and ceiling level around this consolidation between USD 39.39 and USD 40.58 per barrel.
A break of the black line could mean another test of the blue resistance zone wave high at USD 41.75 per barrel. On the downside, the next support beyond the red line lies at USD 38.50 per barrel.
The indicators are still pretty bearish. The MACD histogram is red and the signal lines have just moved through zero. The Relative Strength Index is under 50 and firmly sideways for now. This is a clear sideways trend and a break of the aforementioned consolidation levels could lead to a signal of the future direction.