- WTI fluctuates in a potential rectangle pattern on the day chart.
- The daytime RSI is flat while in the bearish region.
WTI (NYMEX futures) is fading its recovery attempt in Thursday’s European session as risk-off sentiment dominates amid rising coronavirus cases in Europe and diminishing prospects for a trade deal fiscal stimulus in the US
Hours ago the WTI fell to $ 39.70, this being the lowest level in a week. From there it bounced and climbed to $ 40.37. It is trading around $ 40.20, in positive territory for the day.
From a short-term technical perspective, the WTI barrel lacks a clear direction as it sits within a horizontal channel. (rectangle) of almost two months duration, as seen in the day chart.
The rises continue to face rejection at the 100-day moving average (DMA) at $ 40.46. A consolidation above would draw attention to the barrier of the 50 day moving average at $ 40.68. A daily close above the latter is required for the bullish momentum to gain strength.
Looking ahead to the next few hours, attention in the US will be on data on unemployment benefits and the sale of existing homes. On the American night it will be the second and last presidential debate ahead of the November 3 elections. In addition, the news around the negotiations for more fiscal stimulus is expected to influence Wall Street and oil.
Day chart
Credits: Forex Street
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