- WTI returns to the support of the dynamic trend line on the 4-hour time frame.
- The monthly chart is reaching resistance and a correction could be in the charts.
The price of oil it continues to consolidate the daily uptrend and on Monday, the price has fallen to the 4-hour dynamic support. At the time of writing, WTI is down 0.26% at the close of Wall Street. Rice fell from a high of $ 69.97 to a low of $ 68.95.
Chinese data showed that crude oil imports fell to a year low in May and likely contributed to oil price fragility.
Crude oil has risen for two weeks, with Brent rising 38% this year and WTI rising 43% on expectations of better demand and the Organization of the Petroleum Exporting Countries and allied producers maintaining supply restrictions. instead it has been a boost to the market.
Meanwhile, on Monday, OPEC Secretary General Mohammad Barkindo said that OPEC + expects inventories to fall further in the coming months.
Still, global demand is expected to rise following decisions by the United States and Europe to loosen restrictions on COVID-19.
Furthermore, India has begun to ease its latest blockade.
“A global launch of the vaccine is expected to drive mobility considerably higher this summer in response to massive pent-up demand,” explained TD Securities analysts.
Ultimately, the global market will be able to absorb the extra barrels, and strong summer demand could translate into higher prices before OPEC + increases the flow of spare capacity back to the market.
WTI technical analysis
Technically, the 10 EMA on the 4-hour chart maintains the price supported on Monday as it follows the dynamic trend line.
However, according to the monthly chart, a correction could be on the charts before long. The weekly highs above confluence with the 38.2% Fib retracement level at $ 65,611 at this point.