- WTI rose near the $82.90 zone, establishing a three-day winning streak.
- A stronger dollar and the fragile Chinese situation could limit gains.
He West Texas Intermediate (WTI) it rose on Wednesday and threatened the resistance at $83.00.
What is driving the price up is the approach of Hurricane Idalia to the Gulf of Mexico, where the US concentrates 15% of its oil production, and fears of a supply crunch are driving up crude prices. In addition, the publication on Tuesday of lower-than-expected US crude reserves and the continued maneuvering by OPEC+ to extend its voluntary production cuts also contribute to the rise.
Elsewhere, China reported weak economic data during the Asian session, with the Non-Manufacturing PMI dipping to 51.00, versus 51.1 expected, and weak Chinese prospects could cap Black Gold gains. Furthermore, the dollar is trading strongly against most of its rivals, which could also put a damper on WTI bulls.
WTI levels to watch
Analyzing the daily chart, it is observed that the WTI has a technical position between neutral and bullish, with the bulls gradually recovering ground. The Relative Strength Index (RSI) shows a positive slope above its midline, while the Moving Average Convergence (MACD) shows decreasing red bars. Furthermore, the pair is above the 20,100,200-day simple moving average (SMA), which implies that the bulls are in control on a larger scale.
Support levels: $81.25, $80.00, $78.50.
Resistance levels: $83.00, $83.50, $84.50.
WTI Daily Chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
