WTI OIL Analysis: Oil Prices are Overly Optimistic

Fundamental Analysis of WTI OILWTI OIL Key Takeaways

• China-US tariff agreement: Yesterday, China and the United States reached a tariff agreement, and the unexpected results brought optimistic results. Investors are optimistic that crude oil demand will rise in the future.
• Crude oil supply and demand: It is worth noting that the current oil price is more of a short-term optimistic sentiment. At present, crude oil has not returned to the price level before Trump announced the so-called reciprocal tariff on April 2. At the same time, global supply has announced two consecutive production increases since April, and there are still suppressive factors in the fundamentals of oil prices.

Technical Analysis of WTI OIL

WTI OIL Daily Chart Insights

• Stochastic oscillator: The indicator sends a bullish signal, suggesting that the short-term upward force has the upper hand. It is worth noting that the bullish signal does not occur in the overbought area, and the current rise has the probability of rebounding.
• Key resistance: Oil prices closed with a long upper shadow yesterday, which is a potential bearish signal. The next trend is extremely critical. If the exchange rate breaks through yesterday’s high and stands above the black 65-day moving average, oil prices are still expected to strengthen. On the contrary, the rebound trend of oil prices will end.

WTI OIL 2-hour Chart Analysis

• Stochastic oscillator: The indicator sends a bearish signal in the oversold area, and at the same time forms a top divergence with oil prices, and the short-term trend is bearish.
• Key support level: Although the short-term trend is bearish, the trend of decline focuses on the support price below. 60.34 is the low point of the previous upward trend, and it is also the joint resistance area composed of the moving average and the upward trend line. Therefore, oil prices cannot be easily shorted before they fall below. On the contrary, as long as they fall below, you can look for opportunities to follow the trend in the subsequent rebound.

WTI OIL Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 62.40,
• Bullish Scenario: Bullish sentiment prevails above 62.40, first target 63.50, second target 64.00;
• Bearish Outlook: In a bearish scenario below 62.40, first target 61.50, second target 60.80.

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