Crude oil was little changed in early trade this morning, with front-month WTI hovering either side of $61 per barrel. Prices continue to consolidate.
WTI has found support at $60 per barrel for close to three weeks now. But it also finds itself hemmed in by its 50-day moving average which has acted as resistance, on a daily closing basis, over the same period.
This means that crude prices are getting compressed in an ever-tightening daily range, while the MACD has flattened out at neutral levels. This market action, or lack thereof, suggests that a breakout could be coming. The problem is working out in which direction it may go.
Chart-wise, crude oil has been in a downtrend ever since prices peaked in March 2022, soon after Russia invaded Ukraine. But that doesn’t mean that prices can’t spike sharply in either direction.
Source: TN Trader
Traders await today’s release of the delayed US weekly inventory data, which has been pushed back due to the Monday holiday. But the real focus will be on Sunday’s OPEC+ meeting. Could this prove to be the catalyst for oil’s next big move?
