General analysis WTI for 22.12.2021
22.12.2021 17:14
Semana
General
Current Dynamics
There is a favorable situation for short-term price growth at the oil market. Yesterday the National Oil Corporation of Libya reported about suspension of production at four oil fields. In addition, gas prices in Europe exceeded $ 2000 per thousand cubic meters, so demand for petroleum products, which can replace gas increases. Also, according to weekly API report US crude stocks decreased by 3.67 million barrels, with supply disruption, increased logistical activity and congestion of roads pointing to further inventory drawdown.
At the same time, the rapid spread of the Omicron strain is holding back the growth potential of the hydrocarbon market. Many countries, including the U.S. and the U.K., will do everything they can to prevent lockdowns and keep economic growth in check. Australia and other major economies have stepped up their mass vaccination program. The director of the pharma company Moderna said that a vaccine for the Omicron strain will be ready soon. China will also make every effort to support the growth of economic activity. The PRC is ready to increase government spending to support manufacturers and stabilize supply chains.
Today at 5:30 p.m. (GMT+2) the U.S. EIA will release its weekly report on inventories of major oil products.
Support and Resistance Levels
On the 4-hour chart, the instrument is correcting at the top part of the Bollinger Bands. The indicator is pointing sideways and the price range remains wide, indicating an uptrend correction. The MACD histogram is holding a weak buy signal. Stochastic has left the overbought area, forming a sell signal.- Support levels: 64.90, 66.10, 67.35, 68.70, 69.85.
- Resistance levels: 62.40, 72.40, 73.80, 75.25.
Trading scenarios
- Long positions can be opened at the current price with a target of 75.20 and a stop loss at 69.60. Implementation period: 1-3 days.
- Short positions should be opened below the level of 69.70 with a target of 67.00 and a stop-loss at the level of 70.70. Implementation period: 1-3 days.