In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the WTI OIL for 28th May 2024.
Key Takeaways
- Crude oil supply and demand gap: In its May monthly report, IEA lowered global oil demand forecast to 1.1 million barrels per day while oil supply is expected to increase by 580,000 barrels per day to 102.7 million barrels per day.
- EIA Inventories: On Thursday, US is expected to announce its weekly oil inventories report, a one day delay due to market holiday on Monday. The market is expecting a bearish report due to recent rise in oil supply as demand wanes before summer holiday season.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The indicator issued a bullish signal near the midline, suggesting possible indecisiveness following previous formation of bearish signal in a short time span. Remain vigilant as its price poses substantial risk of short-term oscillation.
- Moving average suppression: There is a clear moving average suppression area above WTI crude oil. The red 33-day moving average has crossed below the 65-day black moving average, while the green 200-day period is also above. Although oil prices are in the rebound and rising stage, there is a high probability that they will not be able to break through the suppression of the moving average group above.
- A clear suppression area for oil prices could be seen where 33-MA and 65-MA line (red and black respectively) crosses while 200-MA line hovers below both lines. While oil prices have a slight possibility for an upside bias, it is highly unlikely to extend its gains above the suppression area in near-term.
4-hour Chart Analysis
- Stochastic Oscillator: The indicator enters overbought region, suggesting possible retracement ahead. It is suggested to wait for the formation of bearish signal from the upside and pay attention to future short trading opportunities.
- Suppression area: Although WTI crude oil price breaks through the red 33-MA and black 65-MA lines, there is still suppression above the green 200-MA line and the previous high.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 78.05,
- Bullish Scenario: Bullish sentiment prevails above 78.05, first target 79.05, second target 79.35;
- Bearish Outlook: In a bearish scenario below 78.05, first target 77.70, second target 77.25.
Conclusion
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Disclaimer
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.
