General analysis WTI for 26.10.2021
Current Dynamics
Yesterday the WTI oil brand renewed its seven-year highs, after which it moved to a sharp decline. One of the downside factors was the closing of short-term speculative positions after the highs were reached. But Investizo estimated that the main downward driver was the news about the negotiations in Brussels between Iran and the European Union tomorrow. The curious thing is that the meeting will take place ahead of the negotiations on the nuclear deal in Vienna.
At the same time, there is high demand for oil products in the U.S. Key participants of the OPEC+ agreement, such as Russia and Saudi Arabia, insist on keeping production volumes increase. In addition, despite the regulation of electricity and coal prices by the Chinese authorities, global energy prices remain high ahead of the winter period.
Tomorrow at 16:30 (GMT+2) the U.S. Department of Energy will release its report on inventories of major oil products.
Support and resistance levels
On the 4-hour chart, the instrument is strengthening in the upper range of the Bollinger Bands. The indicator is pointing sideways and the price range remains unchanged, indicating a correction. MACD histogram keeps the buy signal in the positive zone. Stochastic has left the oversold area, forming a strong buy signal.
- Support levels: 79.70, 80.75, 81.60, 82.35, 83.10.
- Resistance levels: 83.80, 84.65, 85.00, 86.15.
Trading scenarios
- Long positions can be opened at the current price with a target of 84.90 and a stop loss at 82.50. Implementation period: 1-2 days.
- Short positions should be opened below the level of 82.65 with targets 81.90, 81.55, and stop-loss at 65.75. Implementation period: 1-2 days.