Chart - Courtesy Trading View
Spot Analysis:
WTI slips 0.75% amid choppy year-end trade, finds stiff resistance at daily cloud
Previous Week's High/ Low: 73.93/ 66.15
Previous Session's High/ Low: 77.41/ 75.80
Fundamental Overview:
As the highly transmissible variant is causing COVID-19 case numbers to surge across the world, traders await the next OPEC+ meeting on January 4th for further direction.
OPEC+ will meet to decide whether to go ahead with a 400,000 barrels per day (bpd) production increase in February.
Technical Analysis:
- WTI upside remains capped at daily cloud
- The pair has formed back-to-back Doji and spinning top formation at highs
- Price action remains capped at daily cloud
- Oscillators are at overbought levels, scope for some pullback
Major Support and Resistance Levels:
Support - 74.50 (55-EMA), Resistance - 77.40 (Cloud base)
Summary: WTI on track for massive annual gains, set to close over 56% higher for the year. Pullback on account of overbought conditions is likely to be shallow. Major trend is bullish and trend reversal only below 200-DMA.
