West Texas Intermediate (WTI) crude oil futures concluded the trading day at $89.31, marking a decline of $2.88, or 3.12%. This drop occurred after a session that saw prices fluctuate significantly, ranging from a low of $87.68 to a high of $92.83. Despite this sharp daily downturn, the commodity still registered a weekly gain of $7.51, an increase of 9.17%, underscoring the considerable price swings observed in the market.
Retail forex and CFD traders often monitor crude oil prices due to their broad impact on global economic sentiment and the potential for related currency pair movements, such as USD/CAD. The energy market's volatility can present both opportunities and risks, requiring careful attention to technical and fundamental developments.
From a technical analysis standpoint, the daily chart revealed that buyers had previously attempted to push WTI towards $93.50 on Thursday, briefly surpassing the 50% Fibonacci retracement level of the move from the March high to the July low, situated at $93.26. However, this upward momentum quickly faded, allowing sellers to regain control. Today’s peak at $92.83 fell short of this critical retracement level by approximately 43 cents before prices reversed course, solidifying this area as significant resistance.
Key Technical Levels in Focus
- The 100-day moving average, positioned at $89.90, remains a crucial indicator.
- WTI had closed above this moving average on Thursday, but today's price action pushed it back below this threshold.
- Moving forward, maintaining a position above this moving average would bolster a bullish outlook, whereas continued trading below it would suggest sellers retain a technical edge.
Concurrently, Brent crude futures also faced selling pressure, settling below the psychological $100 level at $96.78. This represented a decrease of $3.91, or 3.88%, for the session. The synchronized decline in both major crude benchmarks highlights a broader market adjustment, with traders closely watching for sustained trends or further indications of volatility.
📰 Based on reporting from: ForexLive →