S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
- WTI is seen consolidating its recent move higher to a two-week top, set earlier this Tuesday.
- Supply concerns stemming from the US-Iran standoff over the Strait of Hormuz lend support.
- The bullish technical setup backs the case for an extension of the recent upward trajectory.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – enters a bullish consolidation phase after hitting an over two-week high during the Asian session on Tuesday and currently trades around the $84.20 region. Uncertainties stemming from the US-Iran standoff over the Strait of Hormuz keep the geopolitical risk premium in play and continue to act as a tailwind for the black liquid.
From a technical perspective, WTI maintains a near-term bullish bias above the 38.2% Fibonacci retracement level of the July-August slide. Moreover, momentum indicators stay constructive and back the case for a further near-term appreciating move. In fact, the Relative Strength Index (RSI) is around 56, and the Moving Average Convergence Divergence (MACD) is above zero and edging higher.
Bullish pressure, however, still needs to clear a key structural barrier near the $86.65-$86.70 confluence – comprising the 100-day Simple Moving Average (SMA) and a downward-sloping trend line. The 50.0% Fibo. level reinforces the overhead hurdle at $87.23, which, if cleared, should pave the way for an extension of the upward trajectory towards the stronger resistance near the 61.8% Fibo. level, at $91.93.
On the downside, initial support emerges at the 38.2% Fibo. retracement near $82.53, followed by the 23.6% retracement at $76.72 if sellers regain control. Some follow-through selling would expose the monthly swing low, around mid-$73.00s, before WTI eventually drops to test sub-$70.00 levels.
WTI daily chart
