In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTIUSD for 24th May 2024.
Key Takeaways
- Unexpected rise in inventory: Wednesday’s US Crude Oil Inventories report from EIA shows an unexpected buildup of stock last week. While the report triggered worries for possible sluggish demand, the upcoming travel-heavy summer season has eased the concerns as it normally expected to boost overall demand.
- OPEC+ meeting in focus: Market participants are waiting for the commencement of the meeting between the Organization of Petroleum Exporting Countries and its allies on June 1st. Currently, the group are making voluntary output cuts totaling about 2.2 million barrels per day which are expected to be extended during its upcoming meeting.
Technical Analysis
Daily Chart Insights
- Price action: Oil prices closed below 77.75, ending their previous trend of being subjected within the sideways channel. Previous attempt to re-enter into the channel falters, as shown by the long wick of previous candlestick.
- MACD histogram: MACD shows the formation of bearish signal with slow build-up of downside momentum. We may see the continuation of weakness in the upcoming trading sessions.
1-hour Chart Analysis
- Price action: Oil price continues to trade in a sideways fashion, mainly due to lack of momentum during the Asian trading session. Nonetheless, the recent rebound near 76.60 suggests possible upside for short-term.
- MACD histogram: MACD shows the formation of bullish divergence, further clarifying the possibilities of an upside for short-term.
Pivot Indicator
- According to the Pivot Point Indicator, the central price of the day is established at 78.66,
- Bullish Scenario: Bullish sentiment prevails above 77.52, first target 78.66, second target 80.61;
- Bearish Outlook: In a bearish scenario below 75.57, first target 72.48, second target 69.39.
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.
