In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI OIL for 27th March 2024.
Key Takeaways
- Crude oil inventories increased: According to Energy Information Administration (EIA), US crude oil inventory rose by 9.34 million barrels last week, its largest increase in 6 weeks. This has led to selloff on global oil prices during the US session yesterday.
- IEA lowers production forecast for 2024: International Energy Agency (IEA) commented that global oil demand is losing momentum and they lowered forecast for 2024 oil production levels. Likewise, IEA also estimate slow demand to around 1.22 million barrels per day, partly due to slowdown in consumption from China.
Technical Analysis
Daily Chart Insights
- Stochastic oscillator: Following the formation of bearish signal, the indicator currently oscillates around oversold region. The rebound in oil price this week stages uncertainty for its trend in short-term. For the time being, if bears succeed in regaining its momentum, we may expect their price to head towards the 79.40 area.
- Ascending wedge: Since the end of January, WTI oscillates within an ascending wedge. While it did break the top level of the wedge, bearish pressure mounts and regains its momentum. For the time being, monitor for possible breakout from the bottom in the near future which will open more room for downside bias.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator issued possible formation of bullish signal, suggesting and end to downward trend. However, be cautious for a possible sideways consolidation during Asian session due to low liquidity.
- Intraday trend direction: Previous breakout from the bottom level of the channel, combined with closure below the 65-MA line (black) suggests an extension towards the downside. Next target will be around the 100% level of Fibonacci.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 104.38,
- Bullish Scenario: Bullish sentiment prevails above 104.38, first target 104.50, second target 104.65;
- Bearish Outlook: In a bearish scenario below 104.38, first target 104.10, second target 103.92.
Conclusion
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Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
