General analysis WTI for 10.11.2021

Current Dynamics

The price of WTI oil continues to rise this week. On Monday, support for the oil market was provided by a price hike for December deliveries of Saudi Aramco oil and gas company. The biggest increase in prices is planned for the countries of the Asian region. Yesterday, the publication of weekly API report, which reflected an unexpected decline of commercial oil reserves in the U.S., contributed to the price growth. The inventory drawdown is associated with an increase in fuel consumption as the lifting of quarantine measures has led to an increase in domestic tourism activity. Weekly crude stocks decreased by 2.485 million barrels, while experts predicted a weekly increase of 1.9 million barrels.

In the meantime there is still a supply shortage on the market. OPEC+ members are not going to backtrack on their plan and will keep raising production by no more than 400kbpd in December. Earlier the USA, India and Japan appealed to the largest oil exporters to increase production levels.

Today at 17:30 (GMT+2) the U.S. Department of Energy will release data on inventories of major oil products.

Support and resistance levels

On the 4-hour chart, the instrument is correcting in the upper range of the Bollinger Bands. The indicator is pointing upward and the price range has widened, indicating that the uptrend continues. MACD histogram is holding a buy signal. Stochastic has left the overbought area, forming a sell signal.

Support levels: 79.80, 80.85, 81.70, 83.00, 83.70.

Resistance levels: 85.00, 86.00, 86.85, 68.15.

Trading scenarios

Long positions can be opened at the current price with a target of 85.30 and a stop-loss at 83.25. Implementation period: 1-2 days.

Short positions should be opened below the level of 83.50 with a target of 82.44 and a stop-loss at the level of 84.10. Implementation period: 1-2 days.