WTI Price Analysis: Trades sideways around $85.00 – Crypto News – Crypto News
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WTI Price Analysis: Trades sideways around $85.00 – Crypto News

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  • WTI trades in a narrow range around $86.00 ahead of US Biden’s visit to Israel.
  • The broader outlook of the oil price is bullish as risks of potential intervention from other Middle East players are persistent.
  • WTI aims to shift above the 50% Fibo retracement at $85.77.

West Texas Intermediate (WTI), futures on NYMEX, consolidate in a tight range of $85-86 as investors keenly watch for US President Joe Biden’s visit to Israel to discuss the need to eradicate Palestine military group Hamas without escalating civilian casualties.

The broader outlook of the oil price is bullish as risks of potential intervention from other Middle East players such as Iran and Yemen are persistent. This would disrupt the global supply chain for oil significantly.

Meanwhile, the US Dollar consolidated around 106.60 ahead of the speech from Federal Reserve (Fed) Chair Jerome Powell, which will provide cues about the likely monetary policy action in November. Before that US Retail Sales data for September will be keenly watched, which will be published at 12:30 GMT.

WTI aims to shift above the 50% Fibonacci retracement (plotted from August 24 low at $77.53 to September 28 high around $94) at $85.77 on a four-hour scale. The 20-period Exponential Moving Average (EMA) is at $85.10 supporting the oil price bulls.

The Relative Strength Index (RSI) (14) has delivered a range shift move from a bearish to a bullish trajectory. The broader range for the momentum oscillator is expected to be 40.00-80.00 ahead.

A fresh upside would appear if the oil price breaks above October 16 high at $87.00, which would drive the asset toward September 26 low at $87.74, followed by the psychological resistance at $90.00.

In an alternate scenario, a breakdown below October 6 low at $80.63 would expose the asset to August 29 low at $79.21 and August 24 low at $77.53.

WTI four-hour chart      

                   

                         

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