WTI stuck in range around $ 50.50, global growth concerns weigh
- Recovery attempts capped amid oversupply and global growth concerns.
- Technical set up indicates serious downside risks – Goldman Sachs.
The recovery attempts in WTI (oil futures on NYMEX) from below the 51 level remains capped near 51.80 region, as the sentiment continues to be dented by the looming supply glut worries and economic growth concerns.
Markets remain wary whether the planned supply cuts by the OPEC and other producers such as Russia will be able to stabilize the oil markets while the latest reports that the Russian oil output has reached a record high so far in December further added to the oversupply worries.
Moreover, the US-China trade tensions combined with China slowdown fears raise worries over the global economic growth prospects that in turn could hurt the demand for fuel. This collaborates to the limited recovery in the black gold.
However, the downside remains cushioned amid broad-based US dollar selling, as markets resort to repositioning ahead of the much-anticipated Fed rate hike due later this week. Also, markets look forward to the US weekly crude stocks data for fresh directional move in the barrel of WTI.
WTI Technical Levels
Today Last Price: 51.69
Today Daily change: 26 pips
Today Daily change %: 0.506%
Today Daily Open: 51.43
Previous Daily SMA20: 51.84
Previous Daily SMA50: 58.2
Previous Daily SMA100: 64.48
Previous Daily SMA200: 66.66
Previous Daily High: 53.17
Previous Daily Low: 51.11
Previous Weekly High: 53.48
Previous Weekly Low: 50.57
Previous Monthly High: 63.92
Previous Monthly Low: 49.64
Previous Daily Fibonacci 38.2%: 51.9
Previous Daily Fibonacci 61.8%: 52.38
Previous Daily Pivot Point S1: 50.64
Previous Daily Pivot Point S2: 49.84
Previous Daily Pivot Point S3: 48.58
Previous Daily Pivot Point R1: 52.7
Previous Daily Pivot Point R2: 53.96
Previous Daily Pivot Point R3: 54.76