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Market Analysis: WTI facing resistance despite upward bias

ByCapital.com
AuthorDaniela Hathorn
Published 23/09/2024, 13:00
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Oil prices are back pointing higher after rising geopolitical tensions and US rate cuts underpin the commodity. US crude topped at $72.44 per barrel on Friday following a strong performance on Thursday. A bigger-than-expected drawdown in US inventories improved sentiment towards current demand, with the Fed’s 50 basis point cut improving prospects of future demand.

Meanwhile, soaring tensions between Israel and the Iranian-backed militia group Hezbollah in Lebanon keep upwards pressure on prices as supply disruption remains a possibility. That said, momentum has stalled at the start of the new week with WTI struggling to get past $72.55 for the second time since last week, having settled around $72.18 in a similar setup to last Friday.

US Crude (WTI) daily chart

Past performance is not a reliable indicator of future results.

The RSI is currently hovering just below the 50 line, starting to flatten out, suggesting some resistance up ahead. We’ll have to see how the next few days play out but if price attempts to build higher highs and the RSI starts to head lower than we could see a divergence in play, with a drop in price likely to ensue if resistance persists.




Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.

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